FX.co ★ Tokyo Core Inflation Tops Forecasts in November

In November 2025, core consumer prices in Tokyo's Ku-area increased by 2.8% compared to the previous year. This figure remained consistent with October's rate and slightly exceeded market predictions of a 2.7% rise. Notably, this reading surpassed the Bank of Japan's 2% inflation target, bolstering expectations for a gradual shift toward more stringent monetary policy. With ongoing inflationary pressures, a weakening yen, and reduced political emphasis on maintaining low-interest rates, speculation intensified that the central bank might consider raising interest rates in December. However, the probability of such a move next month is still uncertain. BOJ Governor Kazuo Ueda has indicated that while the economy is showing signs of moderate recovery, volatility in global trade policies could potentially hinder growth and affect corporate profits. Inflation data from Tokyo are closely monitored as they often serve as a precursor to nationwide pricing trends.