Japan's Core Inflation Rises to 2.1% Ahead of BOJ Meeting

Japan's annual core inflation accelerated to 2.1% in September from 1.7% in August, official figures released on Friday, 23 October, showed. The result matched the median market forecast reported by Reuters and put the measure above the Bank of Japan's 2% target.

The core index excludes fresh food but includes energy. A separate measure removing both fresh food and energy rose 2.4% from a year earlier, up from 1.9% in August. The pickup was therefore not confined to fuel.

Price rises broadened across goods and services. Goods inflation increased to 2.8% from 2.6%, while the annual rise in services prices reached 1.5%, against 1.2% the previous month, according to the data cited by Reuters.

The Bank of Japan raised its policy rate to 1.25% in September. Its next meeting, on 29-30 October, will include updated growth and inflation forecasts, making this release an important input to the policy assessment.

The figures describe price changes, not a new rate decision. The timing of any further increase in borrowing costs remains uncertain.

Sources: Reuters via MarketScreener; Statistics Bureau of Japan, September CPI.

Archival photo: Bank of Japan head office in Tokyo, August 2026. Syced / Wikimedia Commons, CC0. Cropped to 16:9 by Morval Universal.