FX.co ★ Japan Tokyo Core Inflation Eases for 1st Time in 5 Months

Core consumer prices in Tokyo’s central wards rose 2.6% year-on-year in October 2026, easing slightly from a 2.7% increase in September and matching market expectations. This marked the first slowdown in five months, after September’s gain had been the fastest since November 2025. Meanwhile, the core CPI measure that excludes volatile food and energy prices—viewed by the Bank of Japan as a more accurate indicator of underlying inflation—climbed 2.4% from a year earlier, down from 2.7% in September and below the consensus forecast of 2.7%. In response to persistent inflation pressures, largely driven by higher oil prices amid the continuing Middle East conflict, the BoJ raised its policy rate by 25 basis points to 1.25% at its September meeting, the highest level since April 1995.