Japan's core inflation steady in November, stays above BOJ target

By Leika Kihara

TOKYO, Dec 19 (Reuters) - Japan's core consumer prices rose 3.0% in November from a year earlier, data showed on Friday, staying above the central bank's ?2% target for the 44th straight month.

The outcome reinforces market ?expectations the Bank of Japan will raise interest ?rates to 0.75% from 0.5% at ?a two-day ?policy meeting concluding on Friday.

The increase in the core consumer ?price index (CPI), which excludes ?volatile fresh food prices, matched a median market forecast and was steady from ?the year-on-year pace of ?rise ?in October.

An index stripping away volatile fresh food and fuel costs, which is closely watched ?by the BOJ as a better gauge of underlying price trends, rose 3.0% in November from a year earlier, compared with a 3.1% increase in October.

The BOJ exited a ?decade-long, ?radical stimulus programme last year and raised short-term interest rates to 0.5% in January ?on the view Japan was on the cusp of sustainably hitting its 2% inflation target.

With stubbornly high food prices keeping inflation above its 2% target, a growing number of BOJ board members have signaled ?their readiness to vote for a rate hike to avoid being behind the curve in addressing the risk of too-high ?inflation.

(Reporting by Leika Kihara; Editing by Sam Holmes)