In September, Japan’s core consumer price index (CPI), which excludes fresh food, rose 2.9% year-on-year, slightly above expectations. When both fresh food and energy are excluded, the core-core CPI increased 3.0%, slightly lower than August’s 3.3% rise. Food prices, excluding volatile fresh items, jumped 7.6%, while goods prices rose 4.2%. Service-sector prices increased more slowly at 1.4%, reflecting that firms are gradually passing on higher labour costs. The rise in overall inflation has been driven largely by energy and food costs.