Core Inflation in Japan Rises by 2.9% in September

Japan: Japan's core consumer inflation increased by 2.9% year-on-year in September, surpassing the central bank's 2% target and sustaining market expectations for a potential near-term interest rate hike, as indicated by data released on Friday. According to Yemen News Agency, this inflation data will be a crucial factor for the Bank of Japan during its upcoming two-day meeting next week. The central bank will decide whether to maintain interest rates at the current level of 0.5%. The rise in the core index, which excludes volatile fresh food but includes fuel costs, met market expectations and showed an acceleration from the 2.7% increase recorded in August. Despite consumer inflation remaining above the Bank of Japan's 2% target for over three years, Bank of Japan Governor Kazuo Ueda has advocated for caution in raising interest rates, citing uncertainty about the effects of US tariffs on the Japanese economy.