Japan's inflation accelerated, driven mainly by higher prices for processed foods amid soaring energy costs from the conflict in the Middle East. Excluding fresh produce, inflation rose to 2.1% from 1.7% in August, in line with market expectations and above the BoJ's 2% target; excluding both food and energy, it was 2.4%. Capital Economics said underlying inflation is back above the 2% target and that the BoJ may revise up its inflation forecasts at its October meeting, setting the stage for another hike in December. The BoJ raised rates in mid-September. The government plans to cut the consumption tax on food from 8% to 1% for two years starting April, which media reports say will cost ¥10 trillion (US$63 billion) in lost tax revenue.
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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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