Japan’s Core Inflation Reaches 2.1% in September, Highest This Year

Japan’s core consumer price index, which excludes fresh food but includes energy, rose 2.1% year on year in September, up from 1.7% in August. The reading marked the highest since December 2025 and exceeded the Bank of Japan’s 2% target for the first time in nine months. A measure excluding fresh food and energy increased to 2.4% from 2.0%. Inflation overall accelerated to 2.1% from 1.9% in August. Government fuel subsidies helped offset higher oil costs. The core reading matched forecasts.