Japan's inflation hits 8-year high

STORY: Japan's core consumer inflation rate hit an eight-year high of 3% in September.

It was the fastest pace of gain since September 2014.

The figure puts even more pressure on the central bank's resolve to keep its ultra-easy policy stance.

It also highlights a big dilemma for the Bank of Japan.

The BOJ has tried to underpin a weak economy by keeping ultra-low interest rates - but that in turn has fuelled a slide in the yen.

Analysts said the data could force the BOJ to revise up its consumer inflation forecasts due at next week's policy meeting.

Friday's update comes after the yen fell to a 32-year low.

The currency's fall below the key 150 to the dollar barrier has markets speculating the BOJ could tweak its approach over the coming months.

The yen's slide is particularly painful to Japan due to its heavy reliance on imports for fuel and most raw material.

It has forced companies to hike prices for a wide range of goods like fried chicken and bread.

Japan's inflation is still modest compared with price rises seen in other major economies.

But the BOJ's pledge to keep interest rates super-low is now a rarity in a global wave of monetary policy tightening.