Japan core inflation rises to 2.1%, highest this year

· Economy · Japan

Japan's core inflation rose to 2.1% in September, its highest level this year, according to data reported by CNBC. The figure, which strips out fresh food prices, matched the 2.1% forecast by economists polled by Reuters. The reading keeps inflation above the Bank of Japan's 2% target, sustaining expectations about the central bank's policy path. Rising prices add pressure on households and complicate the government's efforts to support growth. Japan has been gradually moving away from years of ultra-loose monetary policy.

Why it matters：Sustained inflation above target keeps pressure on the Bank of Japan to normalize policy, a move that would ripple through global bond and currency markets.

Key points

  • Core inflation at 2.1% in September, highest this year
  • Matched the 2.1% forecast by economists polled by Reuters
  • Keeps inflation above the BOJ's 2% target

Sources (original reporting)

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