(MENAFN) Japan’s annual core inflation climbed to 2.9% in September, marking its first increase since May and aligning with market forecasts, according to official figures released on Friday.

This reflects a rise from 2.7% in August. Japan’s core inflation data includes energy costs but excludes fresh food prices.

Meanwhile, the country’s headline inflation also rose to 2.9% from 2.7% the previous month, surpassing the Bank of Japan’s 2% target.

In contrast, the "core-core" inflation rate—which is closely monitored by the Bank of Japan and removes both energy and fresh food costs—declined to 3% in September from 3.3% in August.

Rice prices showed a notable slowdown, rising 49.2% year-on-year compared with a 69.7% increase in August. Back in May, rice prices more than doubled, surging 101.7%, marking the sharpest increase in five decades.

Since April 2022, headline inflation has remained above the Bank of Japan’s target for 41 straight months.

The latest figures arrive as Japan’s new prime minister, Sanae Takaichi, assumes leadership over an economy facing challenges such as rising prices, trade uncertainties, and a central bank focused on raising interest rates and normalizing monetary policy.

On Friday, Takaichi vowed to implement an “aggressive” fiscal policy to boost growth, according to a news agency.

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