The pace of the annual inflation rate in Tokyo, a leading indicator of the national average, expedited in January from the prior month, but the Bank of Japan’s cautious view on price outlook continues.

The Tokyo core CPI grew 1.1% on year in January, expediting from a 0.9% rise in December.

Fellas, it can be a misleading indicator as the rise can be due to a rise in crude oil prices (+0.40 percentage points in Jan. vs. +0.38 pts in Dec). The pick-up in inflation remains dull, compared with the economic recovery and the labor market tightening.

USD/JPY hasn’t shown any reaction to this news and continues to trade around $109.800.