JP Morgan economist Takuho Morimoto says underlying inflation in the Tokyo metropolitan area may be materially higher than official readings. After stripping policy subsidies such as discounts to utility bills and childcare fees, CPI excluding fresh food and energy could be around 2.5% versus the 2.0% released on Friday and above the Bank of Japan’s 2% target. "We expect inflation to accelerate further before year‑end, which will increase pressure on the Bank of Japan and raise the risk that del

JP Morgan economist Takuho Morimoto says underlying inflation in the Tokyo metropolitan area may be materially higher than official readings. After stripping policy subsidies such as discounts to utility bills and childcare fees, CPI excluding fresh food and energy could be around 2.5% versus the 2.0% released on Friday and above the Bank of Japan’s 2% target. "We expect inflation to accelerate further before year‑end, which will increase pressure on the Bank of Japan and raise the risk that delayed policy response could prove costly," he said.