Tokyo Core Inflation Hits Two-Year Low of 1.7 Percent

Tokyo's core inflation slowed to a nearly two-year low in March, remaining below the central bank's target for a second consecutive month. Data released on Tuesday indicates that government fuel subsidies have largely offset the rising costs of raw materials driven by a weak yen.

The Tokyo core consumer price index (CPI), which excludes fresh food, rose 1.7% from a year earlier. This result marks the slowest annual increase since April 2024 and follows a 1.8% gain in February. Analysts suggest the current slowdown may be temporary as rising oil prices and import costs continue to exert upward pressure on prices.