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2025-10-31 07:48:59
[Tokyo Inflation Data Explodes Again, Market Bets on Bank of Japan Interest Rate Hike in the Near Term] 1. Tokyo's core consumer price index (CPI) rose 2.8% year-on-year in October, exceeding the Bank of Japan's 2% inflation target for several consecutive months and further widening from September's 2.5%, exceeding the market's general expectation of 2.6%. This data indicates that inflationary pressures in Japan continue to rise. 2. At the same time, the "core-core CPI" (excluding fresh food and fuel costs), which is closely watched by the Bank of Japan, also rose 2.8% year-on-year in October, a significant increase from September's 2.5%. This indicator more accurately reflects the price trend driven by domestic demand, and its accelerated rise indicates that domestic inflationary momentum in Japan is strengthening. 3. These data continue to push up market expectations for a Bank of Japan interest rate hike in the near term. Although the Bank of Japan withdrew from its decade-long aggressive stimulus program last year and raised short-term interest rates to 0.5% in January this year, and consumer inflation has exceeded the 2% target for more than three consecutive years, Governor Kazuo Ueda remains cautious. He emphasized that given the uncertainty surrounding the impact of US tariff policies on the Japanese economy, further interest rate hikes in the future require careful assessment.
