Japan's core inflation rises above the Bank of Japan's 2% target for the first time in nine months
Japan's core consumer prices rose 2.1% in September, above the BOJ's 2% target, driven by fuel costs from the Middle East conflict and a weak yen.
Photo: Morio, CC BY-SA 3.0
Japan's core consumer price index, which excludes fresh food but includes fuel, rose 2.1% in September from a year earlier, up from 1.7% in August and in line with forecasts, Reuters reported. It was the first time in nine months that the measure exceeded the Bank of Japan's 2% target.Sources:1Reuters (via The Star): Japan core inflation exceeds BOJ target, cements near-term rate hike chance, Reuters (via The Star), 23 October 2026 (source, opens in a new tab)
An index that also strips out fuel, which the BOJ watches as a gauge of demand-driven prices, rose 2.4% after 1.9% in August. Reuters attributed the pressure to higher fuel costs from the prolonged Middle East conflict, import prices lifted by the weak yen and strong AI-related demand, partly offset by government fuel subsidies.Sources:1Reuters (via The Star): Japan core inflation exceeds BOJ target, cements near-term rate hike chance, Reuters (via The Star), 23 October 2026 (source, opens in a new tab)
The BOJ raised its key rate to 1.25%, a 31-year high, in September. Governor Kazuo Ueda has warned that underlying inflation may overshoot the target. Reuters, citing sources, said the BOJ is expected to hold rates at its meeting next week but may raise its inflation forecast.Sources:1Reuters (via The Star): Japan core inflation exceeds BOJ target, cements near-term rate hike chance, Reuters (via The Star), 23 October 2026 (source, opens in a new tab)
The yen traded near 157 per dollar after bouncing from a one-month low, with traders watching for possible currency intervention, FXStreet reported.Sources:2FXStreet: USD/JPY Forecast: Bounce from one-month low; BoJ bets to cap gains, FXStreet, 23 October 2026 (source, opens in a new tab)
Where it happened
Who is involved
Related stories
Separate stories that sources connect to this one.
- Brent tops $116, a six-month high, after Aramco evacuates its Dhahran headquartersBrent crude rose above $116 a barrel, its highest since April, after Saudi Aramco cleared its Dhahran headquarters amid Houthi attacks and Iran claimed hits on ships near Hormuz.Sources:Reuters (via The Star): Japan core inflation exceeds BOJ target, cements near-term rate hike chance, Reuters (via The Star), 23 October 2026 (source, opens in a new tab)
Show -Infinity older stories
More from Japan
- AI-found PHP2Shell flaws push governments and companies to take websites offlineTwo critical PHP flaws found with AI help led governments, banks and Wikipedia to pull sites offline while attackers began probing unpatched servers.22 Oct 2026
- AI stocks slide worldwide as Kospi, Nikkei and Hang Seng fall about 3%Tech and AI shares fell from Seoul to New York on worries about expensive borrowing for AI build-outs and stretched valuations; Lam Research and Meta fell after their earnings.22 Oct 2026
- Sensex falls for a third day as crude tops $110 and RBI minutes rule out near-term rate cutsThe Sensex lost 460 points and the rupee weakened to 94.81 per dollar as Brent crude rose above $110, a day after RBI minutes signalled the next move can only be a hike or a pause.22 Oct 2026
- French 10-year borrowing costs top 5% for the first time since 2002France's 10-year bond yield rose above 5% amid violent protests and a fight over the 2027 budget, with a Moody's rating review due on 23 October.21 Oct 2026
Topics
Sources
- 1
- 2