Consumer inflation in Tokyo unexpectedly held steady on the effects of temporary subsidies, in data that back the Bank of Japan¡¯s cautious approach to raising its benchmark interest rate without derailing it from its upward path.
Consumer prices excluding fresh food rose 2.5% in September from a year earlier in the capital, according to the Ministry of Internal Affairs and Communications Friday. The median economist estimate was for a 2.8% advance in a Bloomberg survey.
The unexpected steadying of the main gauge sends a fresh reminder about the volatility of data as government measures meant to help consumers cope with soaring costs of living swing the results. For that reason, one dataset alone isn¡¯t likely to derail the BOJ from its rate-hike path.
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