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      Tokyo Core CPI Rises to 2.7%, Strengthening Case for BOJ Rate Hike

      Consumer inflation in Tokyo surged in September, with core prices rising by 2.7% year-on-year, marking the fastest increase in ten months. This figure exceeded both the previous month's increase of 1.8% and the median forecast of 2.4%, indicating a significant acceleration in inflation. The headline Tokyo Consumer Price Index (CPI) also rose by 2.7%, surpassing expectations of 2.5% and up from 1.9% in August.

      A notable contributor to this rise was the increase in prices across various sectors, including food, transport, and hotel charges. The measure excluding fresh food and energy, which is closely monitored by the Bank of Japan (BOJ) as a trend indicator, jumped to 3.0% from 2.0%, beating forecasts of 2.5%. Services inflation also saw an increase, rising to 2.3% from 1.4%, reflecting businesses passing on higher labor costs amid a tight job market.

      The data comes as Japan's unemployment rate edged up to 2.5% in August, slightly above expectations of 2.4%. The jobs-to-applicants ratio remained stable at 1.18. These figures are anticipated to influence the BOJ's quarterly price forecasts during its upcoming policy meeting on October 29-30, where discussions on potential interest rate hikes are expected to intensify. Following a recent increase in the policy rate to 1.25%, the highest in 31 years, economists speculate that further rate hikes could occur as early as December, driven by rising energy costs and broader inflationary pressures.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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