Sept core consumer prices up 2.8 yryr vs f39;cast 2.7
Corecore index up 4.2 yryr in Sept govt
Data among factors to come under scrutiny at BOJ39;s Oct meeting

TOKYO, Oct 20 Reuters Japan39;s core inflation in September slowed below the 3 threshold for the first time in over a year but stayed above the central bank target, keeping alive expectations that policymakers will phase out ultraeasy monetary policy.

The data will be among a host of indicators the Bank of Japan BOJ will scrutinise at its twoday policy meeting ending on Oct. 31, when it produces fresh quarterly growth and price forecasts.

While inflation weakened in September, we think inflation will only fall below the BoJ39;s 2 target by the end of next year, said Marcel Thieliant, head of AsiaPacific at Capital Economics.

The core consumer price index CPI, which excludes volatile fresh food costs, rose 2.8 in September from a year earlier, government data showed on Friday, slightly exceeding a median market forecast for a 2.7 gain but easing from 3.1 in August.

Utility bills fell reflecting the lagged effect of past oil price falls, helping inflation slow below 3 for the first time since August 2022, the data showed.

Prices of food and daily necessities continued to rise but at a slower pace than in August, a sign that costpush pressures were easing.

The corecore index, which strips away fresh food and fuel costs and is closely watched by the BOJ as a better gauge of trend inflation, rose 4.2 in…