MNI BRIEF: Japan Sept Core CPI Rises 2.4% Vs. Aug +2.8%
MNI (TOKYO) - The year-on-year rise of Japan's annual core consumer inflation rate slowed to 2.4% in September from August’s 2.8% due to lower energy and household durable goods prices, although foods excluding perishables rose, data released by the Ministry of Internal Affairs and Communications showed on Friday.
September’s index stayed above the Bank of Japan’s 2% target for the 30th consecutive month.
Lower energy prices (+6.0% vs. +12.0%) and household durable goods (+6.5% vs. +7.7%) drove the index lower, although prices of food excluding perishables rose (3.1% vs. 2.9%).
The underlying inflation rate measured by the core-core CPI (excluding fresh food and energy) rose 2.1% y/y in September, accelerating from August’s 2.0%.
Services prices, a key BOJ focus, rose 1.3% y/y in September against August's 1.4%.
BOJ officials judged that services prices will continue to rise steadily as businesses raise retail prices following wage hikes. (See MNI POLICY: BOJ Wants FY25 Base-Pay Hikes Above 3%)
They are now focused on the October Tokyo CPI due Oct. 25.