TOKYO, Oct 16 (Reuters) – Japan’s core consumer inflation in September likely exceeded the central bank’s 2% target as higher energy prices driven by the Middle East conflict fed through to households, a Reuters poll showed on Friday.
• The nationwide core consumer price index (CPI), which includes energy items but excludes fresh food prices, is expected to have risen 2.1% in September from a year earlier, according to a poll of 15 economists
• That would mark an acceleration from 1.7% in August and put core inflation above the Bank of Japan’s 2% target for the first time since December
• “Amid the emerging deterioration of the situation in Iran, growth is expected to accelerate for food items excluding rice as well as daily necessities,” said Ryosuke Katagi, a market economist at Mizuho Securities
• Separate data released on Tuesday showed Japan’s wholesale inflation rose 6.8% year-on-year in September, slowing from the previous month but underscoring persistent price pressures that continue to fuel market expectations of a near-term BOJ rate hike
• The BOJ may signal this month that underlying inflation has roughly hit its 2% target, highlighting its readiness to raise interest rates again in the coming months. But many in the central bank are wary of hiking again at its October 29-30 policy meeting
• The internal affairs ministry will release CPI data at 8:30 a.m. on Friday, October 23 (2330 GMT on October 22)
(Reporting by Kaori Kaneko; Editing by Sherry Jacob-Phillips)
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