TOKYO (Reuters) – Consumer inflation in Tokyo likely accelerated in January, underlining persistent pressure on living costs, a Reuters poll showed on Friday.
The core CPI for Japan’s capital will come out after the Bank of Japan on Friday raised interest rates to their highest in 17 years, underscoring its confidence that rising wages will keep inflation stable around its 2% target.
The core consumer price index (CPI) in Tokyo, a leading indicator of nationwide price trends, likely rose 2.5% year-on-year in January after a 2.4% gain in December, the median forecast of 16 economists showed.
“Electricity and gas prices remained high and gains in gasoline prices likely pushed up inflation,” said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute.
Data on Friday showed Japan’s nationwide core consumer prices rose 3.0% in December year-on-year, the fastest annual pace in 16 months. nL3N3OI0T4
The internal affairs ministry releases Tokyo CPI data at 8:30 a.m. on Jan. 31, Japan time (2330 GMT at Jan. 30).
Next week’s data also includes Japan’s industrial output, which was expected to show a 0.3% rise in December from a month ago, rebounding from a 2.2% fall in November, the poll found.
Production machinery such as semiconductor manufacturing equipment and transport machinery probably likely boosted factory output, analysts said.
Retail sales were forecast to have risen 3.2% in December from a year ago, helped by solid sales of products such as air conditioners, which are used for heating during winter months, according to the poll.
The trade ministry will release both factory output and retail sales at 8:50 a.m. on Jan. 31, Japan time (2350 GMT Jan. 30).
The nation’s jobless rate was seen at 2.5% in December and the jobs-to-applicants ratio likely stood at 1.25, both figures were unchanged from November, the poll showed.
The jobs data will be released at 8:30 a.m. on Jan. 31.
(Reporting by Kaori Kaneko; Editing by Kim Coghill)
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