Tokyo Core Inflation Surges to 10-Month High

Tokyo's core Consumer Price Index (CPI) jumped to 2.7% in September, marking its fastest pace in 10 months and strengthening the case for a Bank of Japan interest rate hike.

The BOJ's preferred trend gauge showed a half-point beat, with core CPI excluding fresh food but including fuel rising from 1.8% in August.

This reading is significant because it marks the first time since January that Tokyo's core CPI has exceeded the BOJ's 2% target.

The acceleration was broad-based, covering food, transport, and hotel charges, with services inflation picking up to 2.3% from 1.4%.