AI Data Insight
The newly released Tokyo core CPI index for August 2026 (Q3 2026) stood at 102.0, a significant drop from 106.8 in the previous month, primarily reflecting the Statistics Bureau of Japan's base year adjustment (changing the base year to 2025). However, excluding the base year factor, Tokyo's core CPI in August actually grew by 1.8% year-over-year, exceeding the market consensus of 1.7%. The widening inflationary pressure for three consecutive months has further consolidated market expectations that the Bank of Japan (BOJ) will raise interest rates again in the near term.