Japan’s core inflation rate climbed at its fastest rate in more than two years in April, piling pressure on the Bank of Japan as it seeks to normalise the country’s interest rates and the unpopular government of Prime Minister Shigeru Ishiba.

The core inflation figure was higher than expectations of 3.4%. Headline inflation climbed 3.6% from a year ago. Japan's core inflation accelerated to 3.5% in April, government data showed Friday, bolstered in part by surging rice prices,

Hotter-than-expected core inflation supports a Bank of Japan interest rate hike in July. The BoJ is expected to deliver a 25 bp hike, and then stay put for a considerable time due to high uncertainty surrounding US tariffs