Japan’s Inflation Hits 8-year High in Test of BOJ’s Dovish Policy
TOKYO—Japan’s core consumer inflation rate accelerated to a fresh eight-year high of 3.0 percent in September, challenging the central bank’s resolve to retain its ultra-easy policy stance as the yen’s slump to 32-year lows continue to push up import costs.
The inflation data highlights the dilemma the Bank of Japan faces as it tries to underpin a weak economy by maintaining ultra-low interest rates, which in turn are fuelling an unwelcome slide in the yen.
The increase in the nationwide core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, matched a median market forecast and followed a 2.8 percent rise in August. It stayed above the BOJ’s 2.0 percent target for the sixth month, and was the fastest pace of gain since September 2014, data showed on Friday….