Investing.com-- Consumer inflation in Japan’s capital eased more than expected in November and came closer to the Bank of Japan’s target range as food prices eased further from highs seen earlier this year, while import costs also stabilized. 

Month-on-month, Tokyo core CPI was flat after a 0.4% rise in October. 

A core reading that excludes both fresh food and fuel prices read 3.6% in November, down from 3.8% in the prior month. The core reading, which is used as an indicator of underlying inflation by the Bank of Japan, has now consistently pulled back from 40-year highs hit earlier in 2023. 

While inflation remained above the BOJ’s 2% annual target for an 18th consecutive month, it was now the closest it has been to the annual target since June 2022. The core CPI reading was also at its lowest level for the year. 

Still, pressure remained on the central bank to eventually begin tightening its ultra-loose policy. The bank is also expected to end its yield curve control measures in 2024, although BOJ officials have given no such indication, and have largely reiterated plans to keep policy loose. 

The Tokyo CPI reading usually heralds a similar trend in nationwide inflation data, which is due later in December.