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2026.03.3100:13:00UTC+00Tokyo Core Inflation Slows to Near 2-Year Low

Core consumer prices in Tokyo’s central wards rose 1.7% year-on-year in March 2026, edging down from a 1.8% increase in January and missing market expectations for a 1.8% gain. This was the smallest rise since April 2024 and was driven in part by a moderation in food prices (4.9% vs 5.5% in February). For the second consecutive month, core inflation remained below the Bank of Japan’s 2% target, indicating limited immediate pressure on the central bank to tighten monetary policy. Even so, with the conflict in the Middle East keeping global oil prices elevated, authorities remain alert to possible spillover effects on broader consumer prices.

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