ING Groep(US:ING) Xin Hua Cai Jing·2025-10-24 05:58Core Viewpoint - Rising inflation in Japan provides a clear basis for the Bank of Japan to raise interest rates again in December, with the central bank currently viewing a December rate hike as the baseline scenario [1] Inflation Data - In September, Japan's core Consumer Price Index (CPI), excluding fresh food, rose by 2.9% year-on-year, accelerating from 2.7% in August, aligning with market expectations and significantly exceeding the Bank of Japan's 2% price stability target [1] Economic Factors - Strong underlying inflationary pressures, coupled with steady wage growth, are effectively boosting private consumption expenditure, which supports the sustainability of inflation [1] - The continued weakness of the yen is seen as a significant short-term driver of rising inflation [1] Monetary Policy Implications - Rising import costs may further translate into higher end prices in the coming months, reinforcing the necessity for the Bank of Japan to tighten monetary policy [1] - The expectation is that this will support the Bank of Japan in raising interest rates in the coming months, with December's rate hike viewed as a basic scenario [1]