[Capital Economics: Tokyo CPI Won't Prevent the Bank of Japan from Resuming Rate Hikes in October] Odaily Planet Daily reports that Capital Economics stated in a report that Tokyo's lower-than-expected CPI exaggerates the pace of inflation slowdown across Japan. Although this news has once again led the market to believe that a rate hike in October is unlikely, the softer Tokyo CPI in September was primarily due to the city's introduction of free childcare measures. This is the latest in a series of initiatives by Tokyo and Japan nationwide to ease price pressures. It is expected to reduce Japan's overall inflation rate by about 0.7 percentage points. The nationwide inflation rate, excluding fresh food and energy, is projected to drop from 3.3% this month to 3.1%. Capital Economics maintains that the Bank of Japan will resume tightening policies at its October meeting. (Jin10)