Inflation in Tokyo rose at a faster pace, supporting the case for the Bank of Japan to keep raising interest rates gradually and giving the yen a boost.
Consumer prices excluding fresh food gained 2.8% in October from a year earlier in the capital, according to the Ministry of Internal Affairs and Communications on Friday, with the main driver behind the acceleration being water charges. The median economist estimate in a Bloomberg survey was for a 2.6% increase after the gauge rose 2.5% in September.