The story so far · 2 days, October 23 to 24, 2026
One Turn followed this story across 2 editions, from Tokyo, Japan on October 23, 2026. Newest first.
Japan spent decades with very low inflation and near-zero interest rates. The Bank of Japan has been slowly raising rates.
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Japan's consumer inflation rose above 2% in September for the first time this year. The reading adds pressure on the Bank of Japan to raise interest rates by year-end. The government is reviewing costly gasoline subsidies that keep prices near ¥170 a liter.
Why it matters: A rate rise would raise borrowing costs in the world's fourth-largest economy and could move the yen.
Sources: Japan Times, Japan Times · See it on the globe
Japan's core consumer prices, excluding fresh food, rose 2.1% in September, the highest this year and in line with forecasts. The Japan Times said the reading puts pressure on the Bank of Japan to raise rates by year-end.
Why it matters: Inflation above the 2% target strengthens the case for higher Japanese interest rates, which affects global capital flows.
Sources: CNBC, Japan Times · See it on the globe