Consumer inflation in the Tokyo metropolitan area eased in June but remained firmly above the Bank of Japan’s 2% target, leaving the central bank balancing on a policy tightrope.

Inflation in Tokyo slowed for the first time in four months as energy price gains eased and the municipal government waived some water charges for households ahead of a national election likely to center on the cost-of-living crunch.

Tokyo consumer inflation slowed in June, but held above the 3 percent-level for the third straight month due to higher food prices, especially rice.