Tokyo’s core consumer price index, excluding fresh food, rose 2.0% year-on-year in January, according to government data released Friday. The reading was the highest since the 1980s and met the Bank of Japan’s inflation target for the first time in years, driven by higher energy costs and broad-based increases in goods prices. Tokyo’s data is closely watched as an early indicator of nationwide inflation trends. The yen nevertheless remained under pressure at around 115.5 per dollar, close to its lowest level in five years. The currency’s weakness reflects the widening interest-rate differential between Japan and major economies, particularly the United States, where the Federal Reserve is expected to raise rates aggressively this year. The Bank of Japan has signaled that it will maintain its ultra-loose monetary policy, arguing that current inflation is largely cost-push rather than the result of strong domestic demand. Governor Haruhiko Kuroda has said sustained wage growth would be needed before policy normalization is considered. A weaker yen supports Japanese exporters and corporate profits but increases the cost of imported energy, food and other goods, putting pressure on households and small businesses. The government has expressed concern about rapid currency moves but has not intervened. Analysts say the yen could remain weak unless the Bank of Japan signals a concrete policy shift, leaving its near-term direction closely tied to global monetary policy.