FX.co ★ Japan Core Inflation Accelerates for 1st Time in 4 Months

In September 2025, Japan's core consumer price index, which omits fresh food but factors in energy costs, experienced a year-on-year increase of 2.9%. This marked its first acceleration since May and met market expectations. The index's recent rise from 2.7%—noted as the lowest since November 2024—continues to surpass the Bank of Japan's 2% inflation target. At its September meeting, the central bank maintained its policy rates, as anticipated, due to the economy contending with both domestic and international challenges, notably those posed by U.S. tariffs. Nonetheless, Hajime Takata, a member of the BOJ Policy Board, reiterated his recommendation for a rate hike earlier this week, citing an easing of tariff concerns and ongoing progress toward the bank's inflation objectives.