FX.co ★ Tokyo Core CPI Eases to 1.8% in February, Slipping Below BOJ’s 2% Target

Tokyo’s core consumer price index (CPI), a closely watched leading indicator for Japan’s nationwide inflation trend, slowed to 1.8% year-on-year in February 2026, down from 2.0% in January, according to data updated on 26 February 2026.

The February figure marks a modest step down from the Bank of Japan’s 2% inflation target, after Tokyo core CPI had been running at that level in January. Measured on a year-over-year basis, the indicator compares the price change in February 2026 with the same month a year earlier, while the previous reading compared January 2026 with January a year earlier.

The softening in Tokyo’s core inflation suggests price pressures in the capital may be losing momentum, a development markets will watch closely as a possible signal of the broader nationwide inflation trajectory and future policy discussions at the Bank of Japan.