Tokyo core inflation jumps in September to 2.8%, bolsters case for more BOJ hikes
· Business · CNA, channelnewsasia
Tokyo's core consumer price index rose 2.8% year-on-year in September, the fastest pace in over a decade, exceeding the market forecast of 2.6% and marking the 21st consecutive month above the Bank of Japan's 2% target. Excluding fresh food, the core-core index climbed to 2.3%, while energy costs surged 16.5% to push overall inflation to 2.8%. The acceleration was driven by rising service prices and a weakening yen increasing import costs, reinforcing expectations that the central bank will proceed with additional rate hikes at its upcoming policy meeting.
Why it matters
Higher BOJ rates will increase borrowing costs for Japanese corporations and consumers, potentially slowing domestic demand at a time when the yen's depreciation is already driving up import prices, including for Indian goods exported to Japan.
Read the original report — CNA
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.