Japan’s core consumer inflation rose above the Bank of Japan’s (BOJ) 2% target in September for the first time in nine months. This strengthened expectations of further monetary tightening as rising fuel costs, a weak yen and robust artificial intelligence demand added to price pressures.The core consumer price index (CPI), which excludes volatile fresh food prices but includes fuel costs, increased 2.1% year-on-year in September, matching the median market forecast and accelerating from a 1.7% rise in August, government data showed on Friday.US MarketsPowered ByAs on 23 Oct 2026, 01:30 AM ISTS&P 500 Top GainersPool197.21(14.36%)Allegion176.52(11.02%)Roper Technologies436.23(9.73%)Mohawk Industries128.70(9.03%)Gainers»S&P 500 Top LosersModerna202.63(-17.57%)Lam Research230.15(-11.76%)GE Vernova827.42(-10.64%)Teradyne308.75(-10.63%)Losers»Read more: Global Market Today: Asian stocks slide after US tech routA separate index that excludes fresh food and fuel prices, which the BOJ closely watches as an indicator of underlying demand-driven inflation, rose 2.4% from a year earlier, up from 1.9% in August.The latest figures highlighted how higher energy costs linked to the prolonged conflict in the Middle East, elevated import prices stemming from the yen’s weakness and strong demand for AI-related products were offsetting the impact of government fuel subsidies, Reuters reported.Live EventsThe data could strengthen the case for further rate hikes as the central bank seeks to keep underlying inflation above its 2% target.Read more: Dragon enters bear cave with $2.4 trillion lost since May peakHowever, having raised interest rates last month, the BOJ is expected to keep monetary policy unchanged at its meeting next week.