Inflation in Central Tokyo Rises to 1.8 Pct in Aug.

Central Tokyo's core inflation surged to 1.8% in August, marking the third consecutive monthly increase, according to the Japanese Internal Affairs Ministry. This acceleration is attributed to the rising costs of dining out, prepared foods, and medical fees. The core consumer price index for Tokyo's 23 wards, excluding volatile fresh food prices, reached 102.3 against a 2025 base of 100, signifying the 60th consecutive month of year-on-year price increases.

Food prices, which exclude fresh produce, climbed by 3.6% in August, a slight deceleration from the 3.8% increase in July. However, about 70% of surveyed items experienced price hikes. Interestingly, rice prices dropped by 14.2%, extending declines for a fourth consecutive month following historically high price spikes in the previous year.

Medical fees rose by 3.2% due to a change in the reimbursement program for high-cost medical care payments. Conversely, energy prices fell by 2%, up from the 0.7% decline in July, as the government resumed subsidies. Electricity prices declined by 2.4%, while city gas prices decreased by 1.6% after the government reinstated subsidies. Gasoline prices also dropped by 2.7%.

When considering the overall consumer price index, which includes fresh food, it increased by 1.9%, while excluding fresh food and energy, it rose by 2%.