Japan's core inflation up on food, fuel costs

Data highlights broadening pressure that could prod BOJ to raise borrowing costs

Japan's core inflation accelerated in November as rising food and fuel costs hit households, data showed on Dec 20, keeping the central bank under pressure to raise interest rates.

The data, which came in the wake of the Bank of Japan's (BOJ) decision to maintain interest rates at 0.25 per cent on Dec 19, highlights broadening inflationary pressure that could prod the bank to raise borrowing costs further.

Renewed yen declines could pressure prices higher by pushing up import costs. The BOJ's decision to stand pat and governor Kazuo Ueda's doveish comments drove the dollar to a five-month high of 157.80 yen on Dec 20.