Tokyo Core Inflation Spikes to 2.7%, Fueling BOJ Rate Hike Bets

Tokyo's core inflation accelerated to 2.7% in September, exceeding forecasts.

The key gauge of underlying inflation rose sharply from August's 1.8%, according to government data released on Friday.

The Tokyo reading serves as a leading indicator for nationwide price trends and will inform the Bank of Japan's updated quarterly inflation projections, scheduled for release at its next policy meeting on October 29-30.

The acceleration in core consumer prices comes after a period of government fuel subsidies kept inflation subdued relative to underlying pressures.