Oct CPI accelerates, above BOJ target for 19 months
BOJ wants demandpull inflation rather than current costpush
Speculation lingers that BOJ may soon exit negative rates, YCC

TOKYO, Nov 24 Reuters Japan39;s core consumer price growth picked up slightly in October, after easing the previous month, reinforcing investors39; views that stubborn inflation may push the Bank of Japan BOJ to roll back monetary stimulus before long.

The nationwide core consumer price index CPI, which excludes volatile fresh food costs, rose 2.9 yearonyear in October, government data showed on Friday, against 3.0 expected by economists in a Reuters poll.

Core inflation had slowed to 2.8 in September from 3.1 in August, the first time it was below 3 since August 2022.

The rate of inflation has hovered above the central bank39;s 2 inflation target for 19 consecutive months, but the BOJ has insisted the cost pressures are largely driven by higher global commodity prices and the weaker yen, not a sign of sustainable price gains led by stronger domestic demand and wage growth.

I expect the central bank to end negative interest rates and remove yield control as early as in April when they see the results of labourmanagement wages talks and the ongoing move among companies towards passing on costs, said Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities.

The narrower gauge of inflation, or corecore index, which strips away fresh food and fuel costs, rose 4.0 in the year to…