By Leika Kihara

TOKYO (Reuters) -Core inflation in Japan’s capital held steady in September and stayed well above the central bank’s 2% target, data showed on Friday, as price pressures keep alive market expectations of a near-term interest rate hike.

The data will be among information the Bank of Japan will scrutinise at its policy meeting on October 29-30, when the board will produce fresh quarterly growth and price forecasts that will serve as key factors in its rate decision.

The Tokyo core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, rose 2.5% in September from a year earlier, slower than a median market forecast for a 2.8% gain.

The rise in Tokyo core CPI, seen as a leading indicator of nationwide trends, followed a 2.5% increase in Augu

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