October core CPI rises 2.3 yryr vs forecast 2.2
Index excluding fuel rises 2.3 yryr vs 2.1 in September
Services inflation perk up, signal pressure from rising wages
Data among factors BOJ will scrutinise at Dec. 1819 meeting
Majority of economists expect BOJ to hike rates in December

TOKYO, Nov 22 Reuters Japan39;s core inflation in October held above the central bank39;s 2 target and a key index stripping away the effect of fuel accelerated, data showed on Friday, keeping pressure on the central bank to raise its stilllow interest rates.

The data also showed continued gains in service prices, which are closely watched by the Bank of Japan BOJ for clues on whether firms were passing on rising labour costs, suggesting conditions for further rate hikes were falling into place.

The readings will be among factors the BOJ will discuss at its next policy meeting on Dec. 1819, when some analysts expect a hike in shortterm rates to 0.5 from 0.25 as the central bank unwinds years of ultralow rates.

The yen39;s renewed weakness, which heightens inflationary pressure by pushing up the cost of imports, has also led some market players to bet on a December rate hike.

Although evidence of demanddriven price pressure remains scarce, the renewed yen depreciation over the past two months means upward pressure on prices will persist, said Stefan Angrick, senior economist at Moody39;s Analytics, who expects the BOJ to hike rates in December rather than wait until January.

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