Japan inflation tops BOJ target, raising odds of December rate hike

Briefing by News4U · First published 2026-10-23 06:35:58 UTC

September core inflation rose to 2.1 percent, above the 2 percent target, driven by food and energy prices, supporting expectations of a further Bank of Japan rate increase.

Japan’s core inflation excluding fresh food rose to 2.1 percent in September from 1.7 percent in August, exceeding the Bank of Japan’s 2 percent target for the first time this year and aligning with market forecasts. [1] [2] [3]

The acceleration was led by higher processed-food prices and energy costs linked to the Iran war, while a weak yen lifted import prices; rents reached their highest rate in nearly 25 years. [2] [3]

Sources

1. Japan Inflation Rises Above BOJ Target, Backing Rate Hikes

   Bloomberg · 2026-10-22 23:32:16 UTC · Summary only

2. Japan braces for rate hike as inflation accelerates

   RTHK Finance · 2026-10-23 01:53:07 UTC · Excerpt

3. Japan inflation accelerates, paving way for rate hike

   RTÉ Business · 2026-10-23 06:10:08 UTC · Full text

Link to this briefing · Back to news