Price growth in Tokyo’s 23 wards accelerated for a second month as energy price declines narrowed and household goods rose, while the Bank of Japan kept rates unchanged at its July 29-30 meeting.
Core consumer prices in Tokyo’s 23 wards rose 1.9% year on year in July 2026, accelerating from 1.6% in June and exceeding market expectations of 1.7%. The increase marked a second straight month of faster growth but remained below the Bank of Japan’s 2% target for a sixth consecutive month. The pickup was driven largely by a narrower decline in energy costs and broader price pass-through in household goods. Headline CPI rose 2.0% from 1.7%, while core-core CPI excluding fresh food and energy increased 2.0% from 1.9%, indicating underlying inflation remained around the BOJ’s target level after the central bank left rates unchanged.