**Tokyo Inflation Cools More Than Expected: Impact on Crypto Markets**

Tokyo’s inflation rate cooled more than expected in December, driven by easing pressures from food and energy costs. The Tokyo Consumer Price Index (CPI) excluding fresh food rose 2.3% year-on-year, still above the Bank of Japan’s (BoJ) 2% target.

This trend in Tokyo often serves as a leading indicator for national price movements in Japan, helping to shape the broader macroeconomic landscape for both traditional and digital assets.

Despite the recent easing, inflation remains above target, creating a climate of cautious policy expectations for the BoJ. As a result, yen liquidity conditions remain fluid, which can impact investor sentiment.

A fluid liquidity environment and lingering inflation can support selective demand for Bitcoin and other digital assets, as investors look for hedges against potential fiat currency depreciation. However, demand and performance in the crypto market will remain data-driven and subject to global liquidity trends.
https://bitcoinethereumnews.com/tech/tokyo-inflation-slows-to-2-3-yoy-as-food-and-energy-prices-ease-boj-likely-to-persist-with-rate-hikes-yen-in-focus/