Tokyo consumer price growth at 22-year high

Japan Prime Minister Shinzo Abe Mr Abe has made inflation growth a key part of his economic policy

Related Stories

Consumer prices in Tokyo rose at their fastest pace in 22 years in April, surging 2.7% from a year earlier, according to preliminary data.

That is up from a 1% annual increase in consumer prices in Tokyo in March.

The data comes after Japan increased its sales tax to 8% from 5% from 1 April, pushing up prices.

The inflation rate in Japan's capital city is seen as a leading indicator of the trend that is likely to follow across the country in coming months.

Japan has been trying to spur domestic demand through higher inflation.

Marcel Thieliant, Japan economist Capital Economics, said that consumer price growth across the country was likely to be even better than Tokyo in April.

"Of course national inflation will have surged in April due to the sales tax rise," he said.

"Nationwide inflation probably accelerated by even more, as the national Consumer Price Index (CPI) has a lower weight on components which are not subject to the sales tax, notably housing rent and school fees."

The latest data by Japan's statistics bureau showed that overall consumer prices in Japan rose 1.3% in March, from a year ago.

The national data for April will be released next month.

More on This Story

Related Stories

More Business stories

RSS

Features

  • Jesse, Milo and JudahNo kidding

    The family with 34 children - and they're adding two more


  • Lost itemsLost and found

    The strange things passengers leave on the Tube


  • German cabin Stollen Christmas

    How German markets captured the UK's imagination


  • Man and dog on dark winter morningSolstice lag

    Why mornings will keep getting darker after 21 December


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.