By Leika Kihara
TOKYO, Dec 19 (Reuters) – Japan’s core consumer prices rose 3.0% in November from a year earlier, data showed on Friday, staying above the central bank’s 2% target for the 44th straight month.
The outcome reinforces market expectations the Bank of Japan will raise interest rates to 0.75% from 0.5% at a two-day policy meeting concluding on Friday.
The increase in the core consumer price index (CPI), which excludes volatile fresh food prices, matched a median market forecast and was steady from the year-on-year pace of rise in October.
An index stripping away volatile fresh food and fuel costs, which is closely watched by the BOJ as a better gauge of underlying price trends, rose 3.0% in November from a year earlier, compared with a 3.1% increase in October.
The BOJ exited a decade-long, radical stimulus programme last year and raised short-term interest rates to 0.5% in January on the view Japan was on the cusp of sustainably hitting its 2% inflation target.
With stubbornly high food prices keeping inflation above its 2% target, a growing number of BOJ board members have signaled their readiness to vote for a rate hike to avoid being behind the curve in addressing the risk of too-high inflation.
(Reporting by Leika Kihara; Editing by Sam Holmes)
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