Inflationary pressures in Japan’s capital, Tokyo, remained elevated in November, pointing to the risk of similar trends nationwide and keeping the prospects of a Bank of Japan (BOJ) rate hike next month very much alive. Headline consumer prices rose 0.3% in November, leaving the annual pace fractionally lower at 2.7%. Stripping out fresh food prices, core inflation rose 2.8% from a year earlier—one-tenth above expectations and well above the BOJ’s 2% target. Excluding fresh food and energy, inflation also topped forecasts, rising 2.8% over the year versus the 2.7% pace expected. {charts} As shown in the graphic ... (full story)