Tokyo Inflation Surges Above BOJ Target Amid Fading Government Measures

Tokyo's key inflation gauge rose sharply in September, driven by the fading effects of temporary government measures. The consumer price index excluding fresh food jumped to 2.7% year-over-year, surpassing the median economist forecast of 2.3%. This marks a significant acceleration from August's 1.8% advance.

The data released by the Ministry of Internal Affairs and Communications on Friday supports the Bank of Japan's decision to continue raising its benchmark rate as part of policy normalization. The inflation reading touched 2% or higher for the first time since January, a key threshold in the BOJ's target zone.