MNI BRIEF: Japan Sept Tokyo Core CPI Rises 2.5% Vs. Aug 2.5%

Tokyo’s core CPI rose 2.5% y/y in September, unchanged from August and above the Bank of Japan's 2% target for the 11th straight month, the Ministry of Internal Affairs and Communications said Friday.

The index was lifted by energy prices (+2.7% vs -5.3% in August) but dragged down by food excluding perishables (+6.9% vs +7.4%). 

Core-core CPI, excluding fresh food and energy, a key gauge of underlying inflation, slowed to 2.5% y/y from 3.0% but remained above 2% for the seventh month.

Processed food prices rose 5.7% y/y, down from 6.0%, while services prices accelerated to 2.0% from 1.5%. The data showed a slowing pace of gains inline with the BOJ's expectations, backing its view of gradual rate hikes.  (See MNI POLICY: BOJ Sees No Need To Rush Rate Hikes)

Officials are focused on October corporate price revisions, with private consumption still weak amid high living costs.