Due to the high dependence on energy imports, Japan is susceptible to changes in commodities prices, and a weaker yen also pushed up import costs in the report month.
According to the Ministry of Internal Affairs and Communications data, gasoline price surged 21.4 percent at its sharpest pace in over 13 years, tracking higher crude oil prices. Kerosene jumped 25.9 percent while city gas prices turned positive for the first time since August 2019.
Another factor behind the CPI rise was accommodation fees, which advanced 59.1 percent compared to the same period last year when prices were lowered by the "Go To Travel" plan, a government subsidy program to promote regional tourism in Japan.
"We expect further gains in energy-related items such as electricity and city gas from November," said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.
"Recent gains in commodities prices are negative for the Japanese economy because they mean squeezed corporate profits and higher costs shouldered by consumers," Shinke said.
Mobile communications charges fell a record 53.6 percent since major Japanese carriers decided to offer cheaper plans amid government pressure to ease the burden on consumers, with economists saying that the impact of the price drop masked the full impact of rising inflationary pressure in Japan.
The Bank of Japan (BOJ) will probably keep its accommodative monetary policy, as the rise in the headline CPI in Japan is modest compared with other developed nations and is still far from its 2 percent inflation target.
Shinke expects the core CPI to rise about 1.4 percent next spring, but the resumption of the "Go To Travel" may act as a drag on the index.
The so-called core-core CPI, which excludes both fresh food and energy items, fell 0.7 percent and logged its seventh consecutive decrease on a monthly basis.
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