Japan core inflation likely exceeded BOJ target for first time since December

TOKYO, Oct 16 - A Reuters poll indicates that Japan's core consumer inflation in September likely surpassed the Bank of Japan's 2% target, due to rising energy costs stemming from the Middle East conflict, according to a Reuters poll on Friday. The nationwide core consumer price index (CPI), excluding fresh food prices, is anticipated to have increased by 2.1% year-on-year in September, as per the survey of 15 economists.

This would be the first time since December that core inflation has exceeded the 2% threshold. Market economist Ryosuke Katagi from Mizuho Securities explained that growth is expected to quicken for food items aside from rice and daily necessities, partly due to the deteriorating situation in Iran. Meanwhile, Japan's wholesale inflation surged 6.8% year-on-year in September, down from the prior month but reflecting ongoing price pressures, suggesting the Bank of Japan may signal its readiness to raise interest rates again at its upcoming meeting on October 29-30.

However, many within the central bank remain cautious about hiking interest rates once more. The Bank of Japan will release CPI data on Friday, October 23, at 8:30 a.m. local time (11:30 a.m. GMT on October 22).