MNI BRIEF: Japan Sep Tokyo CPI Rises 2.8%; Highest Since 2014

The year-on-year rise in Tokyo's core inflation rate accelerated to 2.8% in September from August’s +2.6%, indicating that nationwide core CPI will likely rise to near 3.0% in September, data from the Ministry of Internal Affairs and Communications showed on Tuesday.

The September’s +2.8% is the highest since June 2014 when it also rose 2.8%. It was the 13th consecutive rise. The inflation data underscores concerns among Bank of Japan officials that inflation is accelerating across the nation. (See MNI: BOJ Worried About Surge in Oct Tokyo CPI, Hit To Spending)

The core-core CPI (excluding fresh food and energy) -- a key indicator of the underlying trend of inflation – rose 1.7% y/y in September following +1.4% in August.

Prices for energy item rose 24.2% y/y in September, slowing from +25.6% in August. Prices for foods excluding perishable foods rose 4.5% y/y in September vs. +3.8% in August. Prices for communications fell 14.4% y/y in September vs. -14.4% in August.

Processed food prices, an item that BOJ officials are focused on and which are sensitive to economic activity, rose 4.8% in September after rising 4.1%.