Core inflation in Japan's capital matched the central bank's 2% target in September, data showed, a sign the economy is making progress in meeting the criteria for further interest rate hikes.

Japan’s key inflation gauge accelerated in August for a fourth consecutive month, hours before the Bank of Japan is scheduled to wrap up its latest policy decision meeting.

Core consumer prices in Japan's capital rose 2.0% in September from the previous year, data showed, matching the central bank's target in a sign the economy is making progress in meeting the criteria for further interest rate hikes.