Japan's trend inflation index hits three-year high, bolstering case for BOJ rate hike

Reuters reports that the BOJ's measure of underlying inflation, which strips out subsidies and other one-off factors, rose 3.2% year-on-year in September 2026, its largest annual increase since October 2023. Ahead of a policy meeting ending October 30, Reuters said the bank was expected to hold rates at 1.25% while signaling readiness for further hikes.