The acceleration was largely driven by higher energy prices, following the phasing out of subsidies for gas and electricity bills. The measure had shaved 0.31 percentage point from the overall price index a month earlier.
Inflation in Tokyo accelerated for a second month in December, as the government temporarily phased out utility subsidies, a result that will likely support expectations of an interest rate hike next year.
Consumer prices excluding fresh food rose 2.4% in the capital, quickening from growth of 2.2% the previous month, the Ministry of Internal Affairs reported Friday. The reading was the strongest since August, though a shade softer than economists’ consensus for a 2.5% gain.
