Hotter-than-expected Tokyo inflation supports BoJ’s case for rate hikes

Tokyo CPI inflation rose 3.5% YoY in April (vs 2.9% in March, 3.3% market consensus) Tokyo inflation increased a much hotter-than-expected 3.5% year on year in April as services prices surprised to the upside. Markets had expected a significant pick-up partly due to increases in education fee waiver programs relative to a low base from …