Japan's core consumer inflation, excluding fresh food, rose to 2.1% in September from 1.7% in August, the highest this year and again above the BOJ's 2% goal. Headline inflation was also 2.1%, while the BOJ's preferred measure excluding energy rose 2.4%, with durable goods and utility charges adding upward pressure. Analysts linked part of the pressure to a weaker yen and pricier imports, and Capital Economics' Abhijit Surya said energy costs may still be feeding through the supply chain. The BOJ raised its overnight call rate by 25 basis points to about 1.25% in September, its highest in three decades, and Surya expects another increase in December. The BOJ's next policy meeting is set for Oct. 29-30, while the Lower House is debating a proposal to cut the food consumption tax from 8% to 1% for two years.
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Related tickers and likely impact
USD/JPY
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/22/2026 | 156.768 |
| Change that session | -0.87% |
DXY
• NeutralRelevance: 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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