Still, the core consumer price index rose at a slower than expected pace of 0.1 percent in October from a year earlier. Economists had projected a 0.2 percent gain. Core CPI had increased 0.2 percent in September and 0.3 percent in August.

Analysts were trying to size up how that modest rise in core CPI might affect the timing of the Bank of Japan's next interest rate increase, which some believe could come as early as this month. The central bank raised its benchmark interest rate for the first time in six years in July to 0.25 percent from virtually zero.

The Japan Times Weekly: Dec. 9, 2006
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