TOKYO, Oct 24, 2025 (BSS/AFP) - Japan's core inflation rate accelerated to 2.9 percent in September from 2.7 percent in August, in line with market expectations, official data showed Friday.

The internal affairs ministry reading, which excludes volatile fresh food prices, comes with new Prime Minister Sanae Takaichi promising to fight inflation as a major priority.

Takaichi, who formally took power on Tuesday, has instructed her new cabinet to draft an economic package to fight inflation.

She replaced Shigeru Ishiba, who faced the wrath of voters, frustrated with rising prices for a wide range of items, most notably rice.

The inflation figures for September showed rice prices up 48.6 percent year-on-year.

Rice prices have skyrocketed because of supply problems linked to a very hot summer in 2023 and panic-buying after a "megaquake" warning last year, amongst other factors.

Takaichi has long advocated for more government spending and easy monetary policy to spur growth.

Since taking office, however, she has said monetary policy decisions are left to the central bank, the Bank of Japan (BoJ).

Takaichi will next week meet US President Donald Trump, who imposed a 15 percent tariff on US-bound exports, including the important auto sector.

The BoJ, under governor Kazuo Ueda, has been gradually "normalising" its super easy monetary policy.

Japan's inflation has been above its two-percent target for some time.

But the vast majority of economists expect it to hold interest rates steady at its next meeting next week because of uncertainty.