BOJ Rate Hike Case Gains Momentum as Tokyo Inflation Hits 2.7%

Tokyo's core consumer price index (CPI) rose 2.7 percent year-on-year in September, surpassing market expectations and bolstering the case for a Bank of Japan rate hike.

The data, released by the Ministry of Internal Affairs and Communications on October 2, serves as a leading indicator for nationwide consumer price trends.

This marks the fourth consecutive month of acceleration and represents the fastest increase in the capital's core inflation rate since November 2025.

Underlying inflation is also rising, with the 'core-core' CPI index, which excludes both fresh food and energy costs, surging to 3.0 percent year-on-year in September.