Japan’s CPI increased 0.7% MoM and 3.0% YoY in October, up from 2.9% YoY in September and a 3-month high. The monthly increase was slightly ahead of the 0.6% MoM increase in October 2024.

• CPI (ex fresh food) increased 0.6% MoM and 3.0% YoY, also up from 2.9% YoY previously, meeting expectations of a 3.0% YoY increase.
• Core inflation (ex food and energy) was 0.6% MoM and 1.6% YoY, rising from 1.3% YoY previously to where it has trended from March to August of this year.
• Food prices were slightly weaker than a year ago, rising 0.9% MoM vs 1.2% MoM in October 2024. Energy prices were a bit soft as well (0.3% MoM vs 0.5% MoM a year ago)
• The furniture & household goods segment jumped 1.3% MoM, much faster than 0.5% MoM a year ago. The annual increase accelerated from 1.0% YoY in September to 1.8% YoY in October.
• The culture & recreation segment increased 1.4% MoM (vs 0.8% MoM a year ago), pushing the annual change up to a three-month high of 2.6% YoY.