The acceleration was consistent with earlier inflation data for Tokyo, where higher energy prices were the primary driver following the phasing out of gas and electricity subsidies. Nationally, energy prices climbed 10.1% in December.
Japan’s key inflation gauge hit 3% for the first time in 16 months, underscoring the nation’s sustained price momentum just hours before the central bank is expected to hike rates for a third time under Governor Kazuo Ueda.
Consumer prices excluding fresh food rose 3% from a year earlier in December, accelerating from 2.7% in the previous month through higher energy costs, the Ministry of Internal Affairs reported Friday. The reading matched the consensus estimate and marked the first time it hit 3% since August 2023.
