Tokyo Core Inflation Eases to 2.6% in October but Stays Above the BOJ Target

Tokyo prices ease slightly

Core consumer prices in Tokyo, which exclude fresh food, rose 2.6% from a year earlier in October 2026, data released on 30 October showed. That was slightly below the 2.7% gain in September and in line with market forecasts. Inflation remains above the Bank of Japan’s 2% target.

Goods and services diverge

Food prices, excluding fresh food, rose 6.7% in October, slowing from 6.9% in September. Services inflation was 1.6%, roughly steady from the previous month, while goods prices rose 4.1%. Economists have said that food-driven pressure is expected to ease over time, though the pace of decline is uncertain.

Why Tokyo matters for the national picture

Tokyo’s figure is released ahead of the national CPI and is often used as a leading indicator. The national October figure is due on 20 November. Until then, Tokyo’s reading is the best available guide to how consumer prices are moving across the country.

What it means for the Bank of Japan

Core inflation above 2% keeps the question of further interest-rate increases in focus for markets. The Bank of Japan will weigh these readings against wage growth and the outlook for demand when it sets policy. For more context, see our finance section and economy coverage.

Source: Tokyo Metropolitan Government and Ministry of Internal Affairs and Communications, Consumer Price Index for Tokyo, October 2026 (released 30 October 2026).