Inflation in Tokyo seen rising in Jan on energy costs – Reuters Poll By Reuters

TOKYO (Reuters) – Consumer inflation in Tokyo is likely to pick up in January, underscoring continued pressure on the cost of living, a Reuters poll said on Friday.

Japan’s capital’s core CPI is due out after the Bank of Japan on Friday raised interest rates to a 17-year high, underscoring its confidence that rising wages will keep inflation steady at around 2%.

The core consumer price index (CPI) in Tokyo, the leading indicator of price trends across the country, rose about 2.5% year-on-year in January after a 2.4% gain in December, the median forecast of 16 economists showed.

“Also fuel prices remain high and gains in fuel prices are likely to increase inflation,” said Takumi Tsunoda, senior economist at the Shinkin Central Bank Research Institute.

Friday’s data showed that Japan’s nationwide consumer price index rose 3.0% in December from a year earlier, the fastest annual pace in 16 months. nL3N3OI0T4

The Ministry of Internal Affairs releases Tokyo CPI data at 8:30 am on Jan. 31, Japan time (2330 GMT on Jan. 30).

The next one (LON:) data for the week also included Japanese industrial output, which was expected to show a 0.3% rise in December from a month earlier, rebounding from a 2.2% fall in November, the survey found.

Manufacturing equipment such as semiconductor manufacturing equipment and transportation equipment are likely to boost factory output, analysts said.

Retail sales are forecast to rise 3.2% in December from last year, helped by strong sales of products such as air conditioners, which are used for heating during the winter months, according to the survey.

The Commerce Department will release both factory and retail sales at 8:50 am on Jan. 31, Japan time (2350 GMT Jan. 30).

The national unemployment rate was seen at 2.5% in December and the job-to-claims ratio was likely at 1.25, both figures unchanged from November, the study said.

Jobs data will be released at 8:30 am on Jan. 31.