Japan's Core Inflation Reportedly Returns Above BOJ's 2% Target as Rate Hike Expectations Rise

Japan's core consumer inflation reportedly accelerated to 2.1% in September from 1.7% in August, moving back above the Bank of Japan's 2% target for the first time this year.
The rebound has been linked to higher energy costs and a weaker yen, which can increase import prices. The report also cites stronger AI-related demand as a contributing factor.
The BOJ has reportedly raised its policy rate by 50 basis points this year to 1.25%, with markets anticipating another increase before year-end.
If confirmed, the figures would reinforce expectations of further monetary tightening. However, the reported rate level, policy changes and inflation data require verification against official BOJ and government releases.