TOKYO - JAPAN'S core consumer prices rose 2.3 per cent in September and unemployment dropped to 4.0 per cent in the same month, official figures showed on Friday.

Core prices rose for a 12th straight month from a year earlier due to high energy costs. It went up at a slower pace than in August, when inflation hit 2.4 per cent, the fastest since October 1997.

Uunemployment unexpectedly dropped to 4.0 per cent in September from 4.2 per cent in August, despite fears of a looming recession. Market forecasts had been for a steady jobless rate of 4.2 per cent.

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