Tokyo inflation accelerated more than expected in November while other data showed the economy moving broadly in line with Bank of Japan projections, feeding into speculation over a possible December rate hike and bumping the yen.
Consumer prices excluding fresh food in the capital climbed 2.2% from a year earlier in November, picking up from 1.8% largely on a winding down of energy subsidies, according to the ministry of internal affairs on Friday. Overall inflation sped up to 2.6%, as food prices also pushed up the gauge, also outpacing economist expectations.
JapanтАЩs currency strengthened after the report from ┬е151.34 against the dollar to as much as ┬е150.01 as the outcome offered support for the view that the BOJ may hike rates again in December. Overnight swaps point to a 63% chance of the central bank moving at its next meeting.
