Tokyo Core Inflation Surpasses Expectations in May

2025-05-29 23:56 By Jam Kaimo Samonte 1 min. read

The core consumer price index for the Ku-area of Tokyo in Japan rose 3.6% year-on-year in May 2025, accelerating from a 3.4% increase in April and above market expectations of 3.5%.

This marked the highest inflation rate in over two years, reinforcing expectations that the Bank of Japan may further tighten monetary policy.

BOJ Governor Kazuo Ueda recently reaffirmed the central bank’s commitment to adjusting policy as needed to meet its inflation target.

However, he cautioned that ongoing trade negotiations with the US are adding to the uncertainty surrounding the economic outlook.

Markets are increasingly anticipating a 25-basis-point rate hike at the BOJ’s July meeting.

Tokyo’s inflation data is closely watched as a leading indicator of nationwide price trends.



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