Tokyo Inflation Slows Down in September with Less Pressure from Fuel Costs

Tokyo’s core inflation in September slowed down for the third month in a row due to a decline in fuel costs.

Core consumer price index for the capital of Japan, which excludes volatile fresh food but not fuel costs, rose 2.5% in September from the same period of last year. However, separate data showed that factory output was flat in August as soft global demand continued to pressure production orders in the world’s third largest economy, especially a slowdown from China’s economic recovery.

Core inflation slowed from a 2.8% increase in August, but was still higher than the target of 2% set by the Bank of Japan.