The Bank of Japan raised interest rates in mid-September, in line with other major central banks around the world. (EPA Images pic)TOKYO: Inflation in Japan accelerated sharply in September, official data showed Friday, rising above the Bank of Japan's target level and paving the way for a further interest rate hike.
The acceleration was driven in particular by rising prices for processed foods against a backdrop of soaring energy costs due to conflict in the Middle East.
Excluding volatile fresh produce, inflation was 2.1%, up from 1.7% in August, according to the internal affairs ministry reading.
The figure was in line with market expectations and above the 2% target set by the central bank, further raising chances of an interest rate hike.
