According to data from Japan's Ministry of Internal Affairs and Communications on October 30, Tokyo's core CPI rose 2.6% year on year after excluding fresh food in October, and the national CPI rose 2.1% year on year in September, showing an accelerated upward trend. Morita Kyohei, chief economist at Nomura Securities, said that the Bank of Japan may continue to raise interest rates and gradually adjust the loose monetary policy in the future, but the purpose of raising interest rates is to stabilize prices, and raising interest rates too quickly may increase the burden on companies and home borrowers. Rising prices are squeezing purchasing power and rising operating costs, and Japan's economic policy faces a “dilemma”: if monetary policy continues to be tightened, there is still a risk that the yen will depreciate and rising import costs will push up prices; if interest rate hikes are too fast or economic activity is further curtailed, the economy will face more serious challenges.

According to data from Japan's Ministry of Internal Affairs and Communications on October 30, Tokyo's core CPI rose 2.6% year on year after excluding fresh food in October, and the national CPI rose 2.1% year on year in September, showing an accelerated upward trend. Morita Kyohei, chief economist at Nomura Securities, said that the Bank of Japan may continue to raise interest rates and gradually adjust the loose monetary policy in the future, but the purpose of raising interest rates is to stabilize prices, and raising interest rates too quickly may increase the burden on companies and home borrowers. Rising prices are squeezing purchasing power and rising operating costs, and Japan's economic policy faces a “dilemma”: if monetary policy continues to be tightened, there is still a risk that the yen will depreciate and rising import costs will push up prices; if interest rate hikes are too fast or economic activity is further curtailed, the economy will face more serious challenges.