Japan’s September Core Inflation Rises to 2.1%, Matching Forecasts

• Japan’s September National CPI rose 2.1% YoY.
• Core CPI (ex-fresh food) also hit 2.1%, generally matching forecasts.
• JPY attracted buyers on persistent inflation data.

Japan’s national consumer price index (CPI) for September rose 2.1% year-over-year, up from 1.9% in August, according to data released on Friday. Core CPI, which excludes fresh food, also increased by 2.1% annually, climbing from 1.7% in the prior month and generally aligning with market forecasts. A broader measure, CPI excluding fresh food and energy, saw a 2.4% year-over-year increase, up from 1.9%. Elevated energy prices and higher import costs, partly due to a weaker yen, were cited as key contributors to the persistent inflationary pressures. The Japanese Yen (JPY) saw some buying interest following the release, as sustained inflation above the Bank of Japan’s target could reinforce expectations for future policy adjustments.