Japan October inflation rate falls, BOJ rate hike still on table [Video]

Japan’s headline inflation rate slipped to 2.3% in October, its lowest level since January and down from the 2.5% seen in September.

The core inflation rate, which excludes fresh food prices, came in at 2.3%, down from September’s 2.4%. The figure however, was slightly higher than the 2.2% expected among economists polled by Reuters.

Japan’s central bank has long stated that its goal is a “virtuous cycle between wages and prices.” A weak inflation reading could therefore mean that the bank would still need to maintain an easy monetary policy stance.

A separate inflation reading, known as the “core-core” inflation rate — which strips out prices of both fresh food and energy — rose to 2.3%, above September’s figure of 2.1%. This metric is also tracked by the Bank of Japan. 

According to LSEG data, 55% of economists polled by Reuters as of Nov. 22 expect the Bank of Japan to hike rates by …