BOJ Faces Pressure for December Rate Hike as Tokyo Core Inflation Surges

Tokyo's core inflation rate surged in September to its fastest pace in 10 months, reaching 2.7% year-over-year.

This marks a significant jump from August's 1.8% and exceeds the Bank of Japan's (BOJ) 2% target for the first time since January.

The core consumer price index, which excludes fresh food prices, rose 3.0% in September after stripping away volatile fuel costs, its fastest year-over-year rise since August 2025.

Economists attribute the increase to rising raw material costs and a weak yen, with some predicting that nationwide core inflation will exceed 3% in coming months.