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Japan's Inflation Surges to 2.9%, BOJ Faces Pressure

10/25/2025

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Story summary
  • Japan's core consumer prices rose 2.9% year on year in September, above the Bank of Japan (BOJ) 2% target.
  • The rise is driven by higher energy and food costs.
  • The BOJ will review the data at its upcoming meeting.
  • Most economists expect no immediate rate change.
  • Prime Minister Sanae Takaichi has prioritized tackling inflation, which contributed to her party's electoral losses.