Japan's core consumer prices rise to 2.1 per cent in September, in line with forecasts
The figure matched forecasts, but it is up from 1.7 per cent in August.
Published
Japan's core consumer prices rose 2.1 per cent in September from a year earlier, in line with what economists had expected. Core prices exclude fresh food. The rate in August was 1.7 per cent.
The headline rate, which includes fresh food, was also 2.1 per cent in September, up from 1.9 per cent in August.
In Tokyo, core prices rose 2.7 per cent in September, above a forecast of 2.4 per cent and up from 1.8 per cent in August, investinglive reported. It was the first reading above the central bank's 2 per cent target since January. Tokyo's headline rate was 2.7 per cent, and its measure excluding fresh food and energy was 3 per cent.
The national figure keeps the Bank of Japan's case for further tightening intact. Officials have signalled that a hold at the October 29-30 meeting is likely, and investinglive reported that December is seen as the next likely move. The data also reinforces Governor Ueda's repeated focus on making 2 per cent inflation stick.
The effect on US markets is indirect. It runs through the carry trade, in which investors borrow in yen to invest elsewhere, and through Japanese long-term bond yields. It does not run directly into American shares.
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