Tokyo March core CPI up 2.4 yryr, matches forecast
Index excluding fresh food, fuel up 2.9 yryr in March
Weak consumption, output cloud outlook for Japan39;s economy

TOKYO, March 29 Reuters Core inflation in Japan39;s capital slowed in March and factory output unexpectedly slid in the previous month, heightening uncertainty on how soon the Bank of Japan can raise interest rates again after exiting its radical monetary stimulus.

The slew of weak signs in the economy could prompt the central bank to go slow in its next rate hike and give investors an excuse to continue selling yen, keeping pressure on Japanese authorities to intervene in the market to prop up the currency.

Factory output is weaker than expected, said Masato Koike, an economist at Sompo Institute Plus. Given the weakness in production, the BOJ may find it hard to raise interest rates again soon.

Core consumer price index CPI in Tokyo, an early indicator of nationwide figures, rose 2.4 in March from a year earlier, matching a median market forecast and slowing slightly from a 2.5 gain in February.

A separate index that excludes the effect of both fresh food and fuel costs, viewed as a broader price trend indicator, also showed inflation slowing to 2.9 in March from 3.1 in February, data showed on Friday.

While core inflation is still above the central bank39;s 2 target, the slowdown underscores how price pressures in Japan are still predominantly coming from raw material costs rather than robust…