- New Premier Sanae Takaichi pledges to pursue 'aggressive' fiscal policy to stimulate growth

ISTANBUL

Japan’s annual core inflation was up to 2.9% in September, the first rise since May, also matching market expectations, according to official data released Friday.

The figure rose from 2.7% in August. Energy expenses are included in Japan's core inflation data, while fresh food prices are excluded.

Additionally, Japan's headline inflation rate also climbed to 2.9% from 2.7% the previous month, above the Bank of Japan's 2% target.

On the other hand, the "core-core" inflation rate, which is monitored by the Bank of Japan and excludes the costs of energy and fresh food, eased to 3% in September from 3.3% the previous month.

Rice prices slowed significantly to a 49.2% year-on-year rise as opposed to a 69.7% increase in August. In May, rice prices more than doubled, soaring 101.7%, the steepest jump in 50 years.

Since April 2022, headline inflation has exceeded the Bank of Japan's target for 41 consecutive months.

The data came as Sanae Takaichi, Japan's new prime minister, takes over an economy with concerns about prices, trade uncertainties, and a central bank that is committed to raising interest rates and normalizing monetary policy.

Takaichi on Friday pledged to pursue an “aggressive” fiscal policy to stimulate growth, according to Kyodo News.

In her first policy speech to parliament, Takaichi outlined her economic vision amid global economic uncertainty and persistent inflationary pressures.