TOKYO (Reuters) -Japan’s core inflation likely accelerated in September for the first time in four months on continued increases in living costs, a Reuters poll showed, adding to pressure on the central bank to raise interest rates.
Bank of Japan Governor Kazuo Ueda said on Thursday the central bank will scrutinise more data in deciding whether to hike rates at its next October 29-30 meeting.
The core consumer price index (CPI), which includes energy items but excludes fresh food prices, was forecast to have risen 2.9% in September from a year earlier, a poll of 19 economists showed on Friday.
That would follow a 2.7% rise in August, which marked the slowest pace in nine months and the third month of deceleration after a 3.7% gain in May.
The inflation rate in September was likely partially elevated by a skewed comparison with September 2024, when energy prices fell due to the introduction of utility and gas subsidies, analysts at SMBC Nikko Securities wrote in a note.
“Increases in food and other prices are ongoing, but the momentum is not as strong as last year,” they wrote.
Japan’s core inflation has exceeded the BOJ’s 2% target for more than three years, as companies continue to pass on rising raw material and labour costs. But the BOJ analyses a variety of inflation measures when it assesses underlying trends.
The internal affairs ministry will release September CPI data at 8:30 a.m. on Oct 24 (2330 GMT on Oct 23).
(Reporting by Kantaro Komiya; Editing by Kim Coghill)
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