According to CoinMeta, in September, Japan's core consumer inflation exceeded the central bank's target of 2% for the first time in nine months, indicating that price pressures are on the rise and reinforcing the rationale for recent interest rate hikes. Data shows that conflicts in the Middle East have pushed up fuel costs, a weak yen has led to higher import prices, and strong demand from AI is putting pressure on prices, which is undermining the effectiveness of the government's fuel subsidies. A senior economist from Sompo Institute Plus, Masato Koike, stated that due to the rise in energy costs caused by the Middle East conflicts and their subsequent second-round effects, core inflation is expected to accelerate. However, since prices have not risen sharply, there is little need for consecutive interest rate hikes in October, and it is anticipated that the Bank of Japan's next interest rate hike will be in December. Marcel Tiliant, head of Citi Macro for Asia-Pacific, expects that the Bank of Japan will maintain its policy unchanged next week but will signal continued concerns about the risk of rising inflation.