Tokyo core inflation jumps in September, bolsters case for more BOJ hikes
TLT•Tokyo’s core CPI rose 2.7% year over year in September, above the 2.4% forecast, while the index excluding fresh food and fuel climbed 3.0%. The data will be among factors affecting the BOJ’s quarterly inflation forecasts due October 29-30.
1. Inflation accelerates
Tokyo’s core consumer price index, which excludes fresh food but includes fuel, rose 2.7% year over year in September, up from 1.8% in August and above the median forecast of 2.4%. An index excluding fresh food and fuel rose 3.0%, compared with 2.0% in August.
2. BOJ outlook
The Tokyo figures are considered a leading indicator of nationwide trends and will be among factors affecting the Bank of Japan’s quarterly inflation forecasts at its October 29-30 policy meeting. The BOJ raised interest rates to a 31-year high last month, and its governor signalled the central bank had entered a new phase focused on preventing inflation from overshooting its target, leaving the door open to further hikes.
