MNI BRIEF: Japan Oct Core CPI Rises 2.9% Vs. Sept's 2.8%

The y/y rise of Japan's annual core consumer inflation rate accelerated to 2.9% in October from September’s 2.8%, above the Bank of Japan’s 2% target for the 19th consecutive month, data released by the Ministry of Internal Affairs and Communications showed on Friday.

The underlying inflation rate measured by the core-core CPI (excluding fresh food and energy) rose 4.0% y/y in October, slowing from September's 4.2% for the second straight deceleration.

The BOJ board in October revised up the median forecast for core CPI this fiscal year to 2.8% from July’s 2.5% as the core CPI was stronger than the bank expected.

The negative contribution from energy items on CPI widened to -0.75 percentage points in October from -1.00 pp in September. Prices excluding perishables rose 7.6% y/y in October, slowing from September’s 8.8%.

Prices for processed foods, accounting for 15% of the total CPI on which BOJ officials focus and are sensitive to economic activities, rose 8.6% in October, slowing from September’s 9.9%, indicating pass-through of cost increases slowed.