Tokyo inflation has fallen below the Bank of Japan's target for the first time in over a year.

The inflation in the capital of Japan cooled down again this month, dropping below the central bank's target of 2% for the first time in over a year. In February, the consumer price index in the Tokyo metropolitan area, excluding volatile fresh food prices, rose by 1.8% year-on-year. This increase was lower than the 2.0% rise in January, but higher than the 1.7% predicted by economists surveyed by the data provider Quick. This result marks the first time since October 2024 that this indicator has fallen below the Bank of Japan's 2% target. Tokyo's data is considered a leading indicator of national trends. This data comes as the central bank maintains a cautious but positive stance towards further rate hikes, following a tightening policy in December that brought the policy rate to 0.75%.