Tokyo CPI Surges to 2.7% in September Amid Escalating Tensions
Tokyo's core Consumer Price Index (CPI) surged to 2.7% in September, its highest level in 10 months, according to data released by Japan's Ministry of Internal Affairs and Communications.
The mid-month preliminary figures for Tokyo's 23 wards showed a significant acceleration from the previous month, with the composite index excluding fresh food (core CPI) rising by 0.9 percentage points to 2.7% year-on-year.
The growth rate exceeded market expectations of a 2.4% increase, reinforcing expectations for an additional rate hike by the Bank of Japan. The BOJ has set a 2% year-on-year increase in consumer prices as its price stability target.
The unwinding of price-suppressing effects from policy measures and companies passing on higher energy and raw material costs to selling prices amid escalating tensions in the Middle East were key drivers behind the acceleration.