Falling rates of inflation in the Tokyo area will likely translate to national CPI figures due in around 3 weeks.

The underlying rate of inflation, the core-core (ex food and energy), which is closest to the US measure of core inflation, remains well above the Bank of Japan 2% target and argues for a reduction in accommodative policy.

tokyo cpi December 2023

USD/JPY is barely changed on the data circa 144.20.


Tokyo area inflation data:

  • National-level CPI data for this month will follow in about three weeks, it takes longer to gather and collate the national data.
  • Tokyo CPI is a sub-index of the national CPI
  • It measures the change in prices of goods and services in the Tokyo metropolitan area
  • Its considered a leading indicator of national CPI trends because Tokyo is the largest city in Japan and is a major economic hub
  • Historically, Tokyo CPI data has been just slightly higher than national Japan CPI data. The cost of living in Tokyo is a touch higher than in most other parts of Japan. Higher rents, for example


There was also data on household spending, for November:

-1.0% m/m

  • expected +0.2% & prior -0.1%

-2.9% y/y

  • expected -2.3%, prior -2.5%