TOKYO (Reuters) – Core consumer inflation in Japan's capital Tokyo in January likely fell below 2 per cent for the first time since May 2022, a Reuters poll of economists showed on Friday, reinforcing the view that price pressures are easing.

The core consumer price index (CPI) in Tokyo, a leading indicator of nationwide inflation trends was expected to have climbed 1.9pc, according to a median estimate of 18 economists, attributed to a slower increase in energy and food prices. That would follow a 2.1pc jump in December.

"The rate of increase in the core index is expected to slow further as food price hikes have subsided and the upward contribution of accommodation prices is expected to contract," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute.

Japan's December core inflation was above the Bank of Japan's 2pc target at 2.3pc growth but its pace slowed for a second straight month, government data showed on Friday.

Meanwhile, the poll estimated Japan's exports likely swung back to expansion in December, rising 9.1pc from the same month a year earlier. That compared with a 0.2pc contraction in November.

December imports are seen down 5.3pc from a year earlier after a 11.9pc decrease in the previous month, resulting in a trade deficit of 122.1 billion yen ($824.05 million), the poll showed.

The government will release the Tokyo CPI data on Jan 26 at 8:30 am Japan time (Jan 25 at 2330 GMT) and trade data on Jan 24 at 8:50 am Japan time (Jan 23 at 2350 GMT).