Tokyo Feb core CPI rises 2.5 yryr, matching forecast
Index excluding fresh food, fuel rises 3.1 yryr in Feb
Unfazed by recession, BOJ seen eyeing nearterm stimulus exit

TOKYO, March 5 Reuters Core inflation in Japan39;s capital reaccelerated in February above the central bank39;s target as the effects of government fuel subsidies faded, data showed on Tuesday, a sign conditions for ending negative interest rates were falling into place.

But an index stripping away the effect of energy costs, seen as an indicator of the broader price trend, slowed, shifting the focus on whether Japan can see wage hikes strong enough to underpin consumption.

The data will be among factors the Bank of Japan BOJ will scrutinise ahead of its policysetting meeting on March 1819 in judging whether to phase out its massive stimulus programme.

Core consumer price index CPI in Tokyo, a leading indicator of nationwide figures, rose 2.5 in February from a year earlier, matching market forecasts, data showed on Tuesday.

The rise in the core index, which strips away the effect of volatile fresh food prices, followed a 1.8 rise in January.

A separate index that excludes the effect of both fresh food and fuel costs, rose 3.1 in February from a year earlier, slowing from a 3.3 gain in January. It was the slowest annual pace of increase since February 2023.

The disinflation isn39;t very broadbased as it mostly reflects a slowdown in processed food inflation, Marcel Thieliant, head of AsiaPacific…