Tokyo Inflation Cools for Now as BOJ Monitors Mideast Impact

Tokyo inflation cooled to its slowest pace in nearly two years as gains in food costs continued to slow, with prospects for higher energy prices owing to the war in Iran likely to keep the Bank of Japan on track for further rate increases.

Consumer prices excluding fresh food rose 1.7% in the capital from a year earlier in March, marking the smallest increase since April 2024, the Ministry of Internal Affairs reported Tuesday. Economists had expected the pace to hold at 1.8%.