Tokyo's unexpected slowdown in inflation in December cannot stop the Bank of Japan's tightening pace, and the pace of interest rate hikes has become the focus of the market.

According to the Wise Finance APP, as the pressure from food and energy prices weakens, Tokyo's inflation, which is considered a leading indicator of national inflation trends, has cooled more than market expectations. However, this is unlikely to prevent the Bank of Japan from further raising interest rates. Data released by Japan's Ministry of Internal Affairs and Communications on Friday showed that in December, the consumer price index (CPI) in the Tokyo area, excluding fresh food, rose by 2.3% year-on-year, a significant slowdown from the previous month's 2.8% and lower than economists' forecast of 2.5%. This is the first time inflation has slowed since August, mainly reflecting a decrease in food prices and energy costs. The overall inflation index has dropped from 2.7% the previous year to 2%, while the underlying inflation index, excluding energy, has slowed to 2.6%.