Kantaro Koiya, Yoshifumi Takamoto

TOKYO, Reuters – The core consumer price index in Tokyo (a key indicator of Japanese prices trends) rose 1.9% in April compared to a year ago. This was the fastest annual rate in seven years according to government data on Friday.

Economists agree that Japan’s inflation is likely to accelerate towards the central bank’s target of 2% in the coming months.

Tokyo Core Consumer Price Index (CPI) rose 1.8% faster than the median market prediction. It also followed an increase of 0.8% in March. Although the index does not include fresh foods, as they are volatile, it includes energy products.

Last week, the Bank of Japan (BOJ), raised its inflation forecast but maintained its loose monetary policy. This underscored its determination to keep massive stimulus up until wage increases and higher demand are accompanied with inflationary pressures.