Inflation in Tokyo slowed more than expected in September, offering support for the Bank of Japan¡¯s view that prices are set to cool further and thus its ultraeasy policy needs to remain in place.
Consumer prices excluding fresh food rose 2.5% in the capital, decelerating from 2.8% in August largely on the back of falling electricity and gas costs, according to data released by the internal affairs ministry Friday. Economists had forecast a reading of 2.6%.
Behind the steady slowdown is the impact from government subsidies. Prime Minister Fumio Kishida¡¯s decision to extend and expand utility subsidies helped reduce the overall inflation figure by 0.9 percentage point.
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