Tokyo Inflation Drops Below 2%, Complicating BOJ’s Rate Hike Plans
Japan's core inflation in Tokyo dipped below the Bank of Japan's (BOJ) 2% target for the first time in five months, signaling potential hurdles for the central bank's interest rate hike strategy. October's inflation data shows that core prices, excluding volatile fresh food costs, increased by 1.8%, slightly above market forecasts but down from September's 2% rise.
Slowing Service Inflation Signals Caution
Services inflation, a key indicator for the BOJ, also slowed, rising only 1.1% in October compared to 1.2% in September. This drop raises concerns about the BOJ’s hopes for wage-driven cost pressures to sustain inflation. According to Saisuke Sakai, senior economist at Mizuho Research & Technologies, the lack of price hikes in services reflects that rising labor costs are not spreading as expected.
Core-Core Inflation and Policy Impact
The "core-core" Consumer Price Index (CPI), which excludes both fresh food and fuel, rose 1.8% year-on-year in October, following a 1.6% increase in September. These figures are closely monitored by the BOJ as a sign of broader inflation trends.
Economists, including Takeshi Minami of Norinchukin Research Institute, do not expect this data to derail the BOJ's plans entirely but foresee a cautious approach to future rate hikes, possibly revisited by December or early next year.


Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 



