MNI BRIEF: Japan's Trimmed Mean Hits Record 2.7% in Oct

Japan’s trimmed mean measure of underlying inflation rose 2.7% y/y in October, a fresh record high pace as pass-through of cost increases continued, data released by the Bank of Japan on Tuesday showed.

The trimmed mean accelerated from the previous high of 2% in September, and comes after data released on Friday showed Japan's annual core consumer inflation rate quickened to 3.6% y/y in October, up from September’s 3% print and the highest level since February 1982. (See MNI BRIEF: Japan's Oct Core CPI Rises 3.6%; Highest Since 1982)

Tuesday's data showed the mode, which is the inflation rate with the highest density in the distribution, rose 1.3% y/y in October, marking a fresh record high for a fourth consecutive month, following a 0.9% rise in September. The mode-based measure of underlying inflation is below the BOJ's 2% price target.

The BOJ maintains the view that the year-on-year rise of core CPI will fall below 2% in fiscal 2023, thereby requiring continued easy policy to support the economy and to create an environment for firms to raise wages.