Japan's core inflation accelerated to its highest level since July, providing support for the Bank of Japan's (BOJ) case to continue raising interest rates.

Key Inflation Data for October:

• Core CPI (ex-fresh food): Rose to 3.0% year-on-year, matching market forecasts.
• Headline CPI: Held steady at 3.0%, remaining above the BOJ's 2% target for the 43rd consecutive month.
• Core-Core CPI (ex-food & energy): Inched up to 3.1% from 3.0% in September, indicating persistent underlying price pressures.

Market Reaction and Official Commentary:
The inflation data was accompanied by heightened concerns over the weak Japanese Yen (JPY), which prompted verbal intervention from senior officials.

• BOJ Governor Kazuo Ueda acknowledged in parliament that a weak yen could affect underlying inflation by raising import costs.
• Finance Minister Satsuki Katayama expressed alarm over "one-sided, sharp moves" in the currency market, hinting at possible intervention.
• The Yen strengthened slightly to 157.5 per USD following the remarks, though it remains down 2.19% for November and 9.52% over the past six months.

The sustained inflation above target and official concern over the currency's decline reinforce expectations that the BOJ will maintain its path of policy normalization.