Japan Core Inflation Likely Topped 2% in September, Reuters Poll Shows
Higher energy prices tied to the Middle East conflict pushed core consumer inflation above the Bank of Japan's target for the first time since December, 15 economists estimate.
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)
