By Leika Kihara

TOKYO (Reuters) -Core consumer prices in Japan’s capital rose 2.8% in November from a year earlier, data showed on Friday, exceeding the central bank’s 2% target and keeping alive market expectations for a near-term interest rate hike.

The increase in the Tokyo core consumer price index (CPI), which excludes volatile fresh food costs, compared with a median market forecast for a 2.7% rise. It followed a 2.8% gain in October.

A separate index for Tokyo that strips away both fresh food and fuel costs – closely watched by the Bank of Japan as a measure of demand-driven prices – rose 2.8% in November from a year earlier after a 2.8% 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

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