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Tokyo Jan core inflation seen falling below 2%, first time in 20 months: Reuters poll

Published 01/18/2024, 10:43 PM
Updated 01/18/2024, 10:45 PM
© Reuters. A woman looks at items at a shop in Tokyo, Japan, March 24, 2023. REUTERS/Androniki Christodoulou/File Photo

By Satoshi Sugiyama

TOKYO (Reuters) - Core consumer inflation in Japan's capital Tokyo in January likely fell below 2% for the first time since May 2022, a Reuters poll of economists showed on Friday, reinforcing the view that price pressures are easing.

The core consumer price index (CPI) in Tokyo, a leading indicator of nationwide inflation trends was expected to have climbed 1.9%, according to a median estimate of 18 economists, attributed to a slower increase in energy and food prices. That would follow a 2.1% jump in December.

"The rate of increase in the core index is expected to slow further as food price hikes have subsided and the upward contribution of accommodation prices is expected to contract," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute.

Japan's December core inflation was above the Bank of Japan's 2% target at 2.3% growth but its pace slowed for a second straight month, government data showed on Friday.

Meanwhile, the poll estimated Japan's exports likely swung back to expansion in December, rising 9.1% from the same month a year earlier. That compared with a 0.2% contraction in November.

December imports are seen down 5.3% from a year earlier after a 11.9% decrease in the previous month, resulting in a trade deficit of 122.1 billion yen ($824.05 million), the poll showed.

© Reuters. A woman looks at items at a shop in Tokyo, Japan, March 24, 2023. REUTERS/Androniki Christodoulou/File Photo

The government will release the Tokyo CPI data on Jan. 26 at 8:30 a.m. Japan time (Jan. 25 at 2330 GMT) and trade data on Jan. 24 at 8:50 a.m. Japan time (Jan. 23 at 2350 GMT).

($1 = 148.1700 yen)

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