Core inflation in Tokyo accelerated in December while services inflation held steady, data showed on Friday, keeping alive market expectations for a near-term interest rate hike.
But factory output fell in November for the first time in three months, suggesting that softening overseas demand was taking a toll on the export-reliant economy.
The data will be among factors the Bank of Japan will scrutinize at its next policy meeting on Jan. 23 and 24, when some analysts expect it to hike short-term interest rates.
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