Japan’s September inflation data and October business surveys are due ahead of the Bank of Japan’s next policy meeting, bringing new price and activity readings into view before the rate decision.
Tokyo’s September release showed faster annual price growth across measures that exclude volatile items. Prices in the capital’s 23 wards rose 2.7% from a year earlier. The index excluding fresh food also rose 2.7%, compared with 1.8% in August. A measure excluding fresh food and energy increased 3.0%, against 2.0% the previous month. Tokyo’s figures offer a regional signal but do not establish the nationwide result.
The Statistics Bureau’s calendar lists Japan’s nationwide September Consumer Price Index (CPI) for 7:30 p.m. ET Thursday, Oct. 22 (23:30 UTC), equivalent to 8:30 a.m. Oct. 23 in Japan. EconoTimes previously detailed the report’s release schedule. FXStreet reported that October flash purchasing managers’ index (PMI) readings were also due overnight in Japan.
September’s flash PMI review from S&P Global described continued expansion among Japan’s private-sector businesses alongside elevated price pressures. Separately, FXStreet reported that Danske Research Team expects resilient activity and inflation pressure to support a December rate increase. FXStreet quoted the team as saying a solid growth picture points toward “another BoJ rate hike in December.”
At its Sept. 18 meeting, the BOJ voted 7-2 to set its overnight call-rate guideline at around 1.25%, effective Sept. 24. The bank signaled that additional increases would depend on how economic and price developments and financial conditions evolve. It said business-to-business price pressure had begun reaching consumer prices, while firms continued building wage increases into the prices they charge. The BOJ also identified yen depreciation and high crude oil prices as factors adding to producer-price pressure.
The BOJ’s next meeting is scheduled for Oct. 29-30, followed by a Dec. 17-18 meeting.
