Feb core CPI rises 2.8 yryr, matches forecast
Corecore CPI rises 3.2 yryr in February
Markets on alert for clues on next BOJ rate hike timing

TOKYO, March 22 Reuters Japan39;s core inflation accelerated in February but an index gauging the broader price trend slowed sharply, data showed, highlighting uncertainty on how soon the central bank will hike interest rates again.

While rising wages and the boost to import costs from renewed yen declines could underpin price growth, some analysts expect inflation to slow below the Bank of Japan39;s 2 target later this year as domestic demand remains tepid.

Markets are seeking clues on when the BOJ will next raise rates after its decision on Tuesday to exit its radical stimulus programme, making a historic shift away from a focus on reflating growth through aggressive monetary easing.

The core consumer price index CPI, which excludes fresh foods but includes energy items, rose 2.8 in February from a year earlier, government data showed, matching median market forecasts.

It accelerated from a 2.0 gain in January due largely to the base effect from the launch of energy subsidies last year.

But inflation as measured by an index stripping away the effect of fuel, closely watched by the BOJ as an indicator of broader price trends, moderated to 3.2 in February from 3.5 in January, marking the slowest annual pace since January 2023.

There are no signs of the overshooting that BoJ Governor Kazuo Ueda has said would be needed for…