(MENAFN) Japan recorded a 2.9% annual core inflation rate in September, representing the initial increase observed since May and aligning with analyst forecasts, Friday's official statistics confirmed.

The metric advanced from August's 2.7% reading. Japan's core inflation calculation incorporates energy costs but strips out fresh food prices.

The nation's headline inflation simultaneously accelerated to 2.9% from the prior month's 2.7%, surpassing the Bank of Japan's 2% benchmark.

Meanwhile, the "core-core" inflation measure—which the Bank of Japan scrutinizes closely and omits both energy and fresh food expenditures—declined to 3% in September from August's 3.3%.

Rice costs demonstrated notable deceleration, registering a 49.2% year-over-year elevation compared to August's 69.7% spike. May witnessed rice prices more than double with a 101.7% surge, marking the sharpest acceleration in five decades.

Headline inflation has continuously breached the Bank of Japan's target threshold for 41 straight months beginning April 2022.

These figures emerge as Sanae Takaichi, Japan's incoming prime minister, inherits an economy grappling with pricing concerns, trade volatility, and a central bank determined to elevate interest rates while normalizing monetary strategy.

Takaichi pledged Friday to implement an "aggressive" fiscal agenda aimed at spurring economic expansion, media reported.

During her inaugural parliamentary policy address, Takaichi presented her economic blueprint against a backdrop of worldwide economic instability and enduring inflationary challenges.

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