June Tokyo core CPI up 2.1 yryr vs f39;cast 2.0
Index less fresh food, fuel rises 1.8 yryr in June
Factory output rebounds in May as auto production recovers
Data among key factors swaying BOJ39;s next rate hike timing

TOKYO, June 28 Reuters Core inflation in Japan39;s capital accelerated in June on rising fuel bills and the boost to import costs from a weak yen, data showed on Friday, keeping alive expectations for a nearterm interest rate hike by the central bank.

Separate data showed factory output rebounded nationally in May as automakers recovered from shipment disruptions, offering policymakers hope the economy was on track for a moderate recovery.

The data may help the Bank of Japan BOJ make the case to raise interest rates as early as this month, as cost pressures from the weak yen heighten the chance of inflation staying well above its 2 target in coming months, analysts say.

The core consumer price index CPI in Tokyo, considered a leading indicator of nationwide figures, rose 2.1 in June from a year earlier, accelerating from the previous month39;s 1.9 gain and exceeding market forecasts for a 2.0 gain.

A separate index that excludes the effects of fresh food and fuel costs, closely watched by the BOJ as a broader price trend indicator, also rose 1.8 in June after a 1.7 gain in May.

Marcel Thieliant, head of AsiaPacific at Capital Economics, said a jump in industrial products prices in the CPI appears to vindicate the BOJ39;s concerns that rising…