Odaily Planet Daily News: Capital Economics said in a report that Tokyo's lower-than-expected CPI exaggerated the pace of slowing inflation across Japan. Although the news once again made the market believe that an interest rate hike in October was unlikely, the softening of Tokyo's CPI in September was mainly due to the city's introduction of free childcare measures. This is the latest in a series of measures taken by Tokyo and across Japan to ease price pressures. It is expected to reduce Japan's overall inflation rate by about 0.7 percentage points. The national inflation rate, excluding fresh food and energy, will fall from 3.3% this month to 3.1%. Capital Economics insists that the Bank of Japan will resume tightening policy at its October meeting. (Jinshi)
