Tokyo May CPI up 1.9 yryr, matches forecast
Inflation lest fuel slows to 1.7 in May from 1.6 in April
Factory output unexpectedly slips in April
TOKYO, May 31 Reuters Core consumer inflation in Japan39;s capital accelerated in May on rising electricity bills but price growth excluding the effect of fuel eased, data showed on Friday, heightening uncertainty on the timing of the central bank39;s next interest rate hike.
Separate data showed factory output unexpectedly fell in April, highlighting the fragile state of Japan39;s economic recovery and dashing policymakers39; hope that strong corporate activity will offset the weakness in household spending.
Consumption and output may rebound in AprilJune from the previous quarter39;s weakness, but not as strongly as initially expected, said Yoshiki Shinke, senior executive economist at Daiichi Life Research Institute.
While the BOJ expects household spending to pick up and underpin the economy, that projection rests on shaky ground given recent signs of weakness in consumer sentiment, he said.
The core consumer price index CPI in Tokyo, a leading indicator of nationwide figures, rose 1.9 in May from a year earlier, matching a median market forecast and accelerating from a 1.6 increase in April.
But the uptick was driven mostly by rising electricity bills, which could hurt already weak consumption and heighten uncertainty about the outlook for Japan39;s economy.
A separate index that excludes the effect of both fresh…