Japan's annual core consumer inflation exceeded the Bank of Japan's 2% target in September for the first time in nine months, data showed Friday, a sign of broadening price pressure that strengthens the case for a near-term rate hike. Higher fuel costs from the prolonged Middle East conflict, elevated import prices from the weak yen and price pressures from strong AI demand are blunting the effect of government fuel subsidies. Core CPI, which excludes fresh food but includes fuel, rose 2.1% from a year earlier, matching forecasts, after 1.7% in August. The index that also strips out fuel, which the BOJ watches more closely as a gauge of demand-driven pressure, rose 2.4% after 1.9% in August. The BOJ raised its key rate to a 31-year high of 1.25% last month; it is expected to hold rates next week but may raise its inflation forecast and signal readiness to keep lifting borrowing costs, according to Reuters sources.
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Related tickers and likely impact
USD/JPY
▼ Likely negativeRelevance: high
| Market | Currencies |
|---|---|
| Close on 10/22/2026 | 156.768 |
| Change that session | -0.87% |
DXY
▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/22/2026 | 101.62 |
| Change that session | -0.07% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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