Tokyo Inflation Surges to 2.7% in September, Supporting BOJ Rate Hike

Tokyo's consumer price index excluding fresh food rose sharply in September to 2.7% from a year earlier, according to data released by the Ministry of Internal Affairs and Communications.

This reading was stronger than the median economist forecast of 2.3% and compared with a 1.8% advance in the previous month.

The inflation gauge touched 2% or higher for the first time since January, backing the Bank of Japan's stance on continuing to raise the benchmark rate after authorities accelerated the pace of policy normalization.