Nov core CPI rises 2.5 yryr, matches forecast
Slowdown reflects easing costpush pressure
Service inflation accelerates to 2.3 in November
BOJ to await signs of wagedriven inflation

TOKYO, Dec 22 Reuters Japan39;s core inflation slowed sharply in November to a pace unseen in over a year, data showed on Friday, highlighting easing costpush pressures that may give the central bank more time before phasing out its massive monetary stimulus.

While service prices continued to rise, some analysts doubt whether the increase will accelerate enough to create a more demanddriven inflation seen as a prerequisite for the Bank of Japan BOJ to exit ultraloose policy.

Inflation is coming down as supplyside factors that pushed up prices fade. Meanwhile, evidence of demanddriven inflation, a byproduct of strong domestic spending and wage gains, remains preciously scarce, said Jeemin Bang, an associate economist at Moody39;s Analytics.

Our baseline is for the BOJ to drop negative interest rates in 2024, but we expect the central bank will maintain some level of support given the economy39;s weak state.

The core consumer price index CPI, which excludes volatile fresh food but includes fuel costs, rose 2.5 in November from a year earlier, matching market forecasts and slowing from a 2.9 gain in October. It was the slowest pace of rise since a 2.4 growth marked in July 2022.

A breakdown showed goods prices rose 3.3 in November from a year earlier, slower than a 4.4 gain in October,…