Tokyo Inflation Rises Unexpectedly

(RTTNews) - Inflation in Japan's capital accelerated unexpectedly in March, data from the Ministry of Internal Affairs revealed Friday.

Excluding fresh food, Tokyo consumer prices moved up 2.4 percent year-on-year, faster than the 2.2 percent rise in February. Prices were expected to climb at a steady pace of 2.2 percent.

Overall inflation logged 2.9 percent annual growth, following February's 2.8 percent rise.

The Tokyo CPI, excluding fresh food and energy, showed an increase of 2.2 percent in March after rising 1.9 percent each in January and February.

The continued acceleration in consumer prices will heighten concerns among Bank of Japan's board members about inflation overshooting its 2 percent target, Capital Economics economist Marcel Thieliant said.

"As the Bank should have a rough sense of the severity of US trade restrictions by the time of its May meeting, we now expect the Bank to deliver another 25bp hike at that meeting," the economist added.