A leading indicator of nationwide consumer prices, Tokyo consumer prices rebounded to 2.6% year-on-year in March (vs a revised 2.5% in February, 2.5% market consensus). Core inflation exlcuding fresh food, a preferred measure for the BoJ, eased to 2.4% (vs 2.5% in February, 2.4% market consensus), but we don't think this would have any impact on the Bank of Japan's policy normalisation ahead. We expect inflation to ease, but to remain above 2% for a considerable time. On a monthly comparison, the Tokyo CPI accelerated to 0.3% month-on-month sa, rising for four months in a row. The gain in goods prices (0.5%) was more ... (full story)