REPEAT: MNI: Tokyo CPI Rise Unch; BOJ Cautious Over Infla

Repeats Story Initially Transmitted at 00:01 GMT Nov 30/19:01 EST Nov 29

     TOKYO (MNI) - Tokyo's annual inflation rate rose at an unchanged pace in

November, underlining for the Bank of Japan that that any pick-up in inflation

remains slow in comparison with the overall economic recovery.

     Seen as a leading indicator of the national average, Tokyo inflation rose

1.0% on year in November, unchanged from October's 1.0%.

     The data showed inflation remains contained by the structural factors

mentioned by the BOJ in July, and the central bank's view on the inflation

outlook remains cautious.

     In central Tokyo, the core consumer price index excluding fresh food rose

1.0% on year in November, marking the 17th straight year-on-year rise, with the

pace of increase unchanged from October, government data released Friday showed.

     The core-core CPI (excluding fresh food and energy) -- a key indicator of

the underlying trend of inflation -- rose 0.6% on year in November, also

unchanged from October's 0.6%.

     The CPI in the capital is a leading indicator of the national CPI for

November, due out on Dec 21. It indicates that the core CPI in November will

rise 1.0% on year, unchanged from October's rate.

     Japan's inflation rate remains muted, but BOJ officials believed that it

will likely improve gradually, maintaining the view that the momentum toward

hitting the 2% price target is in place.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com