April core CPI up 3.4 yryr, matching forecast
Index excluding fresh food, fuel up 4.1 yryr govt
Corecore index rises at fastest annual pace since Sept 1981
Broadening price hikes may keep inflation above BOJ39;s goal

TOKYO, May 19 Reuters Japan39;s core consumer inflation stayed well above the central bank39;s 2 target in April and a key index stripping away the effects of fuel hit a fresh fourdecade high, keeping alive expectations of a tweak to its massive stimulus this year.

The reading comes a few days after data showed the world39;s thirdlargest economy grew faster than expected in the first quarter on a postCOVID consumer rebound.

While raw material costs have peaked, a steady rise in services and food prices highlight broadening inflationary pressure that may prod the Bank of Japan BOJ to revise up this year39;s price forecast in July, analysts say.

The BOJ will likely have little choice but to revise up its inflation forecast in July, said Ryutaro Kono, chief Japan economist at BNP Paribas. With inflation expectations heightening, the chance of a policy tweak may be rising.

The nationwide core consumer price index CPI, which excludes fresh food but includes energy items, rose 3.4 in April from a year earlier, data showed on Friday, matching a median market forecast and perking up from a 3.1 gain in March.

Services inflation accelerated to 1.7 in April from 1.5 in March, the data showed, suggesting that rising labour costs may be starting to feed into…