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Tokyo inflation seen unchanged in August, snapping 3-month acceleration: Reuters poll

Published 08/23/2024, 12:04 AM
Updated 08/23/2024, 12:06 AM
© Reuters. FILE PHOTO: High-rise buildings are seen at the Shinjuku business district during sunset in Tokyo, Japan, March 7, 2017. Picture taken March 7, 2017.     REUTERS/Toru Hanai/File Photo

TOKYO (Reuters) - Consumer price inflation is expected to stay unchanged in Japan's capital Tokyo in August, ending three months of acceleration, a Reuters poll showed, suggesting the central bank may not be in a rush to hike rates.

The same poll also found factory output probably rebounded and retail sales kept growing in July, underscoring the strength of Japan's economy after better-than-expected April-June gross domestic product data last week.

Tokyo's core consumer price index (CPI) in August will likely rise 2.2% from a year earlier, according to a median forecast of 16 economists, unchanged from July's pace.

A drop in gasoline and hotel accommodation costs against higher prices the year before would have cancelled out increases in utility costs, analysts said in the poll.

Moderation in the Tokyo core CPI, the leading indicator of nationwide inflation trends, could cool hawkish views for the Bank of Japan's monetary normalisation schedule after the central bank raised its short-term policy rate to 0.25% in July.

The Tokyo core CPI data is due at 8:30 a.m. on Aug. 30 (2330 GMT, Aug. 29).

Meanwhile, industrial output was seen expanding 3.3% month-on-month in July, rebounding from June's 4.2% drop due to solid demand for semiconductor-related electronics and production machinery items, economists said.

Retail sales growth in July probably slowed, rising 2.9% from a year earlier after 3.7% growth in June, the poll showed.

The Ministry of Economy, Trade and Industry will announce both factory output and retail sales data at 8:50 a.m. on Aug. 30 (2350 GMT, Aug. 29).

© Reuters. FILE PHOTO: High-rise buildings are seen at the Shinjuku business district during sunset in Tokyo, Japan, March 7, 2017. Picture taken March 7, 2017.     REUTERS/Toru Hanai/File Photo

In July, Japan's jobless rate and jobs-to-applicants ratio were forecast to have stayed flat, at 2.5% and 1.23, respectively, the poll also found.

Jobs data is due at 8:30 a.m. on Aug. 30 (2330 GMT, Aug. 29).

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