Tokyo Oct core CPI up 2.7 yryr, vs f39;cast 2.5
Corecore index up 3.8 yryr as price pressures broaden
Data heightens chance of upgrades to BOJ39;s price forecasts

TOKYO, Oct 27 Reuters Core consumer inflation in Japan39;s capital Tokyo, considered a leading indicator of nationwide trends, unexpectedly accelerated in October, a sign of broadening price pressures that may keep alive expectations of nearterm end to ultralow interest rates.

The data reinforces expectations the Bank of Japan BOJ will revise up its inflation forecasts when it produces fresh quarterly projections at next week39;s policy meeting.

The Tokyo core consumer price index CPI, which excludes volatile fresh food but includes fuel costs, rose 2.7 in October from a year earlier, government data showed on Friday, exceeding market forecasts for a 2.5 gain.

The increase, which was faster than a 2.5 gain in September, casts doubt on the central bank39;s view that inflation will slow in coming months as costpush pressure dissipate.

The socalled core core index that strips away both fresh food and fuel prices closely watched by the BOJ as a gauge of broader price trends rose 3.8 in October from a year earlier after a 3.9 increase in September, the data showed.

Services prices rose 2.1 yearonyear in October, faster than a 1.9 gain in September, suggesting that prospects of higher wages could broaden inflationary pressure beyond goods.

Marcel Thieliant, head of AsiaPacific at Capital Economics, said…