Japan's September core CPI excluding fresh food rose 2.1% YoY, up from 1.7% in
August, a print that could reinforce market expectations of Bank of Japan
tightening in December. Markets are pricing a potential 25bps move that would
lift the policy rate to about 1.5%, though the BOJ is widely expected to leave
rates unchanged at next week's meeting to assess the impact of prior hikes,
including September's. A weaker yen and higher international oil prices are
raising import costs and keeping upward pressure on consumer prices. With
underlying inflation now close to the BOJ's 2% target, Governor UEDA said the
banks must pay greater attention to upside inflation risks.
