Japan’s core inflation rises to 2.9% amid rice price surge
Japan’s core inflation climbed to 2.9 percent in September from 2.7 percent the previous month, matching analyst forecasts. The internal affairs ministry measurement excludes fresh food costs and reflects price pressures that helped end the previous government.
Prime Minister Sanae Takaichi ordered her cabinet to prepare economic relief measures after taking office on Tuesday. Rice costs jumped 48.6 percent from a year earlier because of heat damage to crops and consumer stockpiling after earthquake warnings.
Takaichi pledged greater spending and accommodative monetary conditions before her appointment, but has since deferred rate decisions to the Bank of Japan. Most economists predict the central bank will maintain its current policy at its meeting next week despite inflation above the 2 percent target.
The new leader meets President Donald Trump next week as Japanese exporters adjust to 15 percent American tariffs affecting automobiles and other sectors.
