Jan core CPI rises 2.0 yryr, vs forecast 1.8, Dec 2.3
Index excluding fresh food, fuel also slows to 3.5 yryr
Markets expect BOJ to end negative rates in March or April

TOKYO, Feb 27 Reuters Japan39;s core consumer inflation slowed for a third straight month in January but beat forecasts and held at the central bank39;s 2 target, keeping alive expectations it will end negative interest rates by April.

The 2.0 gain in the core consumer prices index CPI was slower than the 2.3 increase in December, internal affairs and communications ministry data showed on Tuesday, underscoring views waning costpush inflation from commodity imports could ease the pain of higher living costs.

However, the gain beat median market forecasts for a 1.8 rise, reaffirming expectations hefty pay hikes will be offered by big firms at labourmanagement wage talks on March 13 that would pave the way for the Bank of Japan BOJ to end negative interest rates in March or April.

The January CPI leaves open the possibility of the BOJ hiking its policy rate at the March meeting if preliminary Shunto results due a few days before the meeting are encouraging, said Marcel Thieliant at Capital Economics, referring to Japanese name for the wage talks.

We still consider an April hike more likely, Thieliant added. For one thing, inflation will jump well above 2 in February as base effects from the launch of energy subsidies a year ago kick in, which would allow the Bank to tell a more compelling story that…