MNI BRIEF: Japan's Oct Core CPI Rises 3.6%; Highest Since 1982

Japan's annual core consumer inflation rate accelerated to 3.6% y/y in October, rising at the fastest pace since February 1982, data released by the Ministry of Internal Affairs and Communications Friday showed.

The quickening from September's 3% pace was expected by Bank of Japan officials, with core CPI expected to rise further as companies pass on cost increases and as the yen weakens.

The underlying inflation rate measured by the core-core CPI (excluding fresh food and energy) rose 2.5% y/y in October, up from September’s 1.8%.

The October rise was caused by high energy and food excluding perishables.

The positive contribution from the energy item on CPI stood at 1.18 percentage point vs. 1.28 pp in September. Prices excluding perishables rose 5.9% y/y in October from 4.6% and its positive contribution widened to 1.33 pp from 1.03 pp.

Prices for processed foods, which account for 15% of the total CPI and on which BOJ officials focus because they are sensitive to economic activities, rose 6.3% in October compared to a 5.1% rise in September.