Japan's Core Inflation Returns Above the BOJ's 2% Target in September

Core inflation climbs back above target

Japan’s core consumer price index, which excludes fresh food but includes energy, rose 2.1% from a year earlier in September 2026. That was the highest reading since December 2025 and matched market forecasts, according to the Ministry of Internal Affairs and Communications data released on 23 October. August had shown a 1.7% rise.

Headline and underlying measures

Headline inflation, which includes fresh food, also rose 2.1%, up from 1.9% in August. The measure that excludes both fresh food and energy, which the Bank of Japan watches closely as a gauge of demand-driven price changes, rose 2.4%. That was the fastest pace in six months and the first increase since October 2025.

Consistent with Tokyo data

The national figure follows the Tokyo reading, which showed core inflation of 2.7% in September before easing to 2.6% in October. Tokyo is often treated as a leading indicator for the national trend, so the two series tend to move together.

Why it matters for residents and visitors

Sustained inflation above the central bank’s target shapes the cost of everyday goods, from food to services, for residents and visitors alike. It also keeps the Bank of Japan’s next policy decision in focus. For more, see our finance section and economy coverage.

Source: Ministry of Internal Affairs and Communications, Consumer Price Index for Japan, September 2026 (released 23 October 2026).