TOKYO, March 15 Reuters Inflation in Japan is expected to have accelerated further in February as the effects of government fuel subsidies faded, a Reuters poll showed on Friday, boosting expectations the Bank of Japan will end negative interest rates soon.
The nationwide core consumer price index CPI, which excludes fresh foods but includes energy items, was seen up 2.8 in February from a year ago, rising at the fastest pace since October, the median forecast of 15 economists showed. That followed a 2.0 gain in January.
While the momentum of food price increases is slowing, the extent of yearonyear declines in energy prices will narrow from the previous month … as the government39;s measures to curb rising prices partially wore off, said Shunpei Fujita, an economist at Mitsubishi UFJ Research and Consulting.
At the same time, economists forecast a slowing in a price index that strips away the effects of energy costs, seen as an indicator of broader price trends.
That could reinforce the BOJ39;s focus on whether Japanese workers will see strong enough pay hikes at spring wage talks to boost consumption.
Japan39;s largest trade union group is due to announce results of the annual wage talks on Friday afternoon, with expectations for a rise of more than 4, which would be the biggest boost since the early 1990s and strengthen the case for a central bank shift away from years of ultraloose monetary policy.
With inflation exceeding the BOJ39;s 2 target for well over…