Headline inflation in Japan also climbed to 2.9% from 2.7% the previous month, above the Bank of Japan’s 2% target<\/a>.<\/p>\n In contrast, the so-called “core-core” inflation rate \u2014 which strips out both fresh food and energy costs and is closely monitored by the BOJ \u2014 eased to 3% from 3.3% in August.<\/p>\n Rice inflation, which drew headlines earlier this year<\/a>, eased sharply to 49.2%, down from 69.7% the previous month. In May, rice inflation hit 101.7%, the highest level in over 50 years.<\/p>\n Japan’s Nikkei 225<\/a> was 0.78% up after the decision, while the yen<\/a> strengthened marginally to trade at 152.53 against the dollar.<\/p>\n Stock Chart IconStock chart icon The data comes as Japan sees a new prime minister in Sanae Takaichi, who inherits an economy beset by trade uncertainties, cost-of-living worries, and a central bank determined to raise interest rates and normalize monetary policy.<\/p>\n Inflation will be a major bugbear for Takaichi to tackle, experts previously told CNBC. Japan has a large population of retirees drawing pensions and those on a fixed income, making inflation “very painful” for them, Tomohiko Taniguchi,\u00a0Special Advisor at the Fujitsu Future Studies Center, told CNBC’s “Squawk Box Asia<\/a>” on Oct 13.<\/p>\n “How to tackle inflation is going to be the first litmus test to judge whether Takaichi could deliver a policy package,” Taniguchi said.<\/p>\n Headline inflation has been above the BOJ’s target for 41 straight months, a run stretching back to April 2022.<\/p>\n Jesper Koll, expert director at financial services firm Monex Group told CNBC on Wednesday after Takaichi took power that “if inflation in Japan is still is not below 2% in six to nine months time, the popularity of this cabinet is going to plummet because [to] the Japanese people… the number one, number two, number three concern is inflation.”<\/p>\n![\"hide](\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\")
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