Japan’s CPI fell -0.1% MoM and was up 2.9% YoY in September, up from a 2.7% YoY increase in August as fresh food prices saw a seasonal rise and energy prices fell at a lower monthly rate than a year ago.

• CPI (ex fresh food) fell -0.2% MoM and was up 2.9% YoY (vs 2.9% YoY expected) in September, rising from 2.7% YoY in August as well. The acceleration in the annual rate came mostly from base effects as the index fell -0.4% MoM in September 2024.
• Core CPI dropped -0.3% MoM and was only up 1.3% YoY in September, as the annual rate slowed from 1.6% YoY in August to the lowest since September 2022.
• The food segment increased 0.7% MoM and fresh food prices were up 3.2% MoM, though both these monthly gains were lower than the monthly increases in September 2024.
• The broad energy segment fell for the fourth straight month, down -1.2% MoM, but this was above the -6.6% MoM drop reported in September 2024.