Market News

Investing.com-- Japanese consumer inflation rose as expected in September, with core inflation hitting a nine-month high and crossing the Bank of Japan's annual target amid continued pressure from rising energy costs and a soft yen.

Core consumer price index inflation, which excludes volatile fresh food prices, rose 2.1% year-on-year in September, data from the Statistics Bureau showed on Friday.

The print was the strongest reading since December 2025, was in line with expectations, and accelerated from the 1.7% rise seen in the prior month.

A core reading that excludes both fresh food and energy prices jumped to a 10-month high of 2.5% from 2.0% in September. The print is closely watched by the BOJ as a gauge of underlying inflation.

Headline CPI rose 2.1% year-on-year from 1.9% in the prior month.

Inflation was largely broad-based, as rising business costs– due to high energy prices and other global supply chain disruptions– trickled down into consumer prices. Japanese producer inflation hit a 3-½ year high earlier this year.

A soft yen also factored into higher inflation, especially as Japan's import costs increased.