FX.co ★ Japan Inflation Accelerates to 2.9%

In September 2025, Japan's annual inflation rate climbed to 2.9%, a slight increase from August's 10-month low of 2.7%. This rise was primarily attributed to the first rise in electricity prices in three months, which surged by 3.2% compared to a 7.2% decline in August. Additionally, gas costs bounced back by 1.6%, opposed to a 2.7% drop in the previous month, following the cessation of temporary government interventions meant to counteract summer heat effects. Core inflation mirrored these changes, aligning with expectations at 2.9%, up from the earlier 2.7%.