Tokyo Headline Inflation Accelerates to 2.8% in October, Supporting BOJ Rate Hike Bets

Tokyo's headline CPI rose 2.8% year-over-year in October, topping forecasts of 2.7% as energy and fresh food costs rebounded. Core CPI eased to 2.6% from 2.7%, matching expectations and remaining above the Bank of Japan's 2.0% target. Core-core inflation cooled to between 2.4% and 2.6%, missing forecasts of 2.7%. Meanwhile, Japan's September unemployment rate fell to 2.4%. The figures keep upward pressure on the BOJ, with markets pricing an approximately 80% probability of an interest rate hike in December.