Tokyo Inflation Slows to 2.3% YoY as Food and Energy Prices Ease; BoJ Likely to Persist with Rate Hikes, Yen in Focus

COINOTAG News, December 26 — Tokyo’s inflation cooled more than expected, easing pressure from food and energy. The Tokyo CPI ex-fresh food rose 2.3% YoY, still above the Bank of Japan (BoJ) 2% target. This dynamic shapes the macro backdrop for crypto markets and risk assets, with Tokyo often a leading indicator for national price trends.

With inflation easing yet remaining above target, policy expectations for the BoJ remain cautious, keeping yen liquidity conditions fluid. Such environment can support selective demand for Bitcoin and other digital assets as hedges against fiat depreciation, though liquidity remains global and data-dependent.

As investors parse the data, crypto volatility may respond to yen funding and cross-asset rotations. Credible inflation trajectories, liquidity signals, and regulatory clarity will drive crypto risk premia and capital allocation decisions.