Tokyo September Core CPI Jumps to 2.7%, Boosting Bank of Japan Rate Hike Bets

Tokyo's core consumer price index climbed 2.7% year-over-year in September, exceeding market forecasts of 2.4% and accelerating from 1.8% in August. Headline CPI also reached 2.7% against a 2.5% forecast, while the measure excluding fresh food and energy surged to 3.0% from 2.0%, beating expectations of 2.5%. The core reading represents the fastest annual pace in 10 months and pushes inflation above the Bank of Japan's 2% target, strengthening expectations for further interest rate hikes. Meanwhile, August labor market data showed unemployment ticking up slightly to 2.5% as the jobs-to-applications ratio held at 1.18.