Core inflation remained more or less unchanged last month, a setback for anyone hoping the Federal Reserve will move quickly to lower interest rates. Cuts are even less likely in the near term because the latest trade negotiations with China should reduce the threat of a U.

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.

Japan's core inflation accelerated at its fastest annual pace in more than two years in April on steady rises in food costs, data showed on Friday, raising the odds of another interest rate hike by year-end.