Japan's annual consumer inflation fell further below the central bank's target in September to an almost two-and-a-half year low, data from the country's Ministry of Internal Affairs and Communications showed.
Annual core inflation, which excludes prices of fresh food, fell to 0.3% in September from 0.5% in August. Fresh food prices grew 0.5% on a yearly basis in September.
Excluding fresh food and energy, annual inflation dropped to 0.5% in September from 0.6% a month ago. Headline inflation slowed to 0.2%, missing the Econoday consensus estimate that the reading would remain unchanged at 0.3%.
The Bank of Japan, which targets 2% inflation, said in September that it will reexamine economic and price developments at its next monetary policy meeting later this month. The central bank also insisted that it "will not hesitate" to ease monetary policy further if needed.
Goods prices increased by 0.2%, on an annual basis, while services' prices grew 0.3%. Housing prices rose 0.2%, while transportation and communication prices fell 1.6%.
On a monthly basis, seasonally adjusted core prices slipped 0.1% in September. Including fresh food, prices remain unchanged from the previous month.