Japan September inflation edges higher for first time since May

Japan’s core inflation rate accelerated to 2.9% in September, the first increase since May and in line with expectations from economists polled by Reuters.

This was higher than the 2.7% seen in August. The core inflation metric in Japan strips out the prices of fresh food but includes energy costs.

Headline inflation in Japan also climbed to 2.9% from 2.7% the previous month.

In contrast, the so-called “core-core” inflation rate — which strips out both fresh food and energy costs and is closely monitored by the Bank of Japan — eased to 3% from 3.3% in August.

The data comes as Japan sees a new prime minister in Sanae Takaichi, who inherits an economy beset by trade uncertainties, cost-of-living worries, and a central bank determined to raise interest rates and normalize monetary policy.

Inflation will be a major bugbear for Takaichi to tackle, experts previously told CNBC. Japan has a large population of retirees drawing pensions and those on a fixed income, making inflation “very painful” for them, Tomohiko Taniguchi, Special Advisor at the Fujitsu Future Studies Center, told CNBC’s “Squawk Box Asia” on Oct 13.

“How to tackle inflation is going to be the first litmus test to judge whether Takaichi could deliver a policy package,” Taniguchi said.

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