March core CPI rises 2.6 yearyear, matches forecast
Corecore CPI rises 2.9, below 3 for first time since Nov 2022

TOKYO, April 19 Reuters Japan39;s core inflation slowed in March and an index gauging broader price trends fell below 3 for the first time in over a year, data showed on Friday, as analysts say yen weakness could complicate the central bank39;s policy deliberations.

The nationwide core consumer price index CPI, which excludes fresh food items but includes energy items, rose 2.6 in March from a year earlier, matching median market forecasts.

It decelerated from a 2.8 rise in February due to a slowdown in food price increases but stayed comfortably above the central bank39;s 2 target.

Meanwhile, a gauge of price gains that excludes fresh food and energy costs and is closely watched by the Bank of Japan BOJ moderated to 2.9 after increasing 3.2 in February. It was the first time since November 2022 that the index fell below 3.

It is within the BOJ39;s expectations that the growth rate of prices of goods will slow down, said Masato Koike, economist at Sompo Institute Plus. Rather, what is unexpected is the yen39;s depreciation or the rise in crude oil prices due to tensions in the Middle East.

Markets are seeking clues as to when the central bank will raise rates again after it ended negative rates last month in a landmark shift away from its decadelong supereasy monetary policy.

The Bank of Japan is expected to keep shortterm interest rates unchanged…