Tokyo's Inflation Likely Rose in January, Polling Suggests
A poll conducted by Reuters indicates that consumer inflation in Tokyo probably experienced an increase in January. The core CPI for the Japanese capital will be released following the Bank of Japan's recent interest rate hike, signaling its confidence in rising wages maintaining inflation around its 2% target.
Economists forecast that Tokyo's core CPI, a leading indicator for nationwide price trends, likely climbed 2.5% year-over-year in January, surpassing the 2.4% rise seen in December. This estimate is based on the median forecast of 16 economists.
"Electricity and gas prices stayed elevated, while gains in gasoline prices likely contributed to the inflation uptick," explained Takumi Tsunoda, a senior economist at Shinkin Central Bank Research Institute.
Nationwide, Japan's core consumer prices increased 3.0% year-over-year in December, representing the fastest annual pace in 16 months. The Ministry of Internal Affairs will release Tokyo's CPI data at 8:30 AM on January 31, Japan time (2330 GMT on January 30).
Additional data to be released next week includes Japan's industrial output, which is anticipated to have grown by 0.3% in December from the previous month, recovering from a 2.2% decline in November. Analysts suggest that production machinery like semiconductor manufacturing equipment and transport machinery may have boosted factory output.
Retail sales are expected to have increased by 3.2% in December year-over-year, driven by robust sales of products such as air conditioners commonly used for heating during the winter months. The Ministry of Trade will release both factory output and retail sales data at 8:50 AM on January 31, Japan time (2350 GMT on January 30).
The nation's unemployment rate is projected to remain at 2.5% in December, while the jobs-to-applicants ratio is anticipated to hold steady at 1.25, which is the same as in November. The jobs data will be disclosed at 8:30 AM on January 31.