Tokyo consumer prices rise at fastest pace in 7 years

div classBodysc17zpet90 cdBBJodivpBy Yoshifumi Takemoto and Kantaro Komiyap

pTOKYO Reuters – Core consumer prices in Tokyo, considered a leading indicator of Japanese price trends, rose 1.9 in April from a year earlier, marking the fastest annual pace in seven years, government data showed on Friday.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe increase in inflation, driven mostly by energy costs and the dissipating effect of past cellphone fee cuts, underscores a common view among economists that Japan will see price rises accelerate to around the central banks 2 target in coming months.p

pThe rise in the Tokyo core consumer price index CPI was faster than a median market forecast for a 1.8 gain and followed a 0.8 increase for March. The index excludes fresh food, which is a volatile factor, but includes energy items.p

pThe Bank of Japan BOJ last week raised its forecast for this years inflation rate but kept its ultraloose monetary policy unchanged, stressing its resolve to maintain massive stimulus until inflationary pressures were accompanied by wage rises and stronger demand.