Japan Inflation Ticks Up to 3%, Exports Rise: Bank of Japan Rate Hike Expected Soon

Overview

Japan's consumer prices, excluding fresh food, rose 3% year-on-year in October, matching forecasts and staying above the Bank of Japan's 2% target for 43 months. Exports also increased by 3.6%, boosted by a weaker yen. These trends fuel speculation that the Bank of Japan might raise interest rates in December or January, while Prime Minister Sanae Takaichi prepares an economic package to address rising living costs.