Headline: Core Inflation in Tokyo Dips Below BOJ's 2% Target

Core inflation in Tokyo, Japan's capital, fell below the Bank of Japan's 2% price stability target for the first time in five months in October. The consumer price index for the Tokyo metropolitan area rose by 1.8% year-on-year in October, compared to a 2.1% increase in September. The region's inflation data is considered a leading indicator of the nationwide CPI.

The announced figures indicated that the annual rate of general price increases in Tokyo slowed for the second consecutive month in October. More moderate energy price increases contributed to inflation remaining below the central bank's 2% target.

The core inflation measure, which excludes volatile fresh food and energy prices, gained momentum in October. The core CPI rose by 1.8% from a year earlier, compared to a 1.6% increase in September.

Service prices, an important indicator of consumer demand, increased by 0.8% in October, a slightly faster rate than the 0.6% rise seen in September.

BNP Paribas economist Ryutaro Kono noted, "Given the recent weakening of the yen, the BOJ will likely ensure that its message does not appear overly dovish as a whole at next week's meeting."

HSBC economists Frederic Neumann and Jun Takazawa also stated, "The BOJ could take its time to confirm progress towards achieving sustainable inflation and assess incoming data."