National inflation in Japan slows down in October but exceeds expectations.

On Friday morning, Japan's National Statistics Office released the national inflation data for October, showing a slowdown in both the overall and core national inflation rates.

According to the data, Japan's Consumer Price Index (CPI) growth in October registered a year-on-year increase of 3.2%, which is lower than the previous reading of 2.5% recorded in September.

At the same time, the growth of the core national inflation index in Japan – which excludes fresh food prices – also slowed, with the CPI recording a year-on-year increase of 2.3%. This figure surpassed market expectations, which had anticipated a slowdown to 2.2%. The previous reading showed that the core national inflation was around 2.4% in September.

Meanwhile, the growth of the core national inflation index in Japan – excluding food and energy prices – accelerated to 2.3% in October, after the national consumer price index recorded a growth of 2.1% in September.

It’s worth noting that the core national consumer price index measures the year-on-year change in the prices of goods and services purchased by consumers in Japan, excluding fresh food prices. The index is published monthly and holds significant importance due to its impact on the Bank of Japan's interest rate decision.