TOKYO – Japan's core consumer prices rose 1.4% in April from a year earlier, the slowest annual pace in four years, due largely to government subsidies on school tuition.
Analysts expect inflation to accelerate in coming months as elevated oil costs and supply disruptions from the Middle East conflict prod firms to raise prices.
The core CPI, which strips away volatile fresh food costs, compared with a median market forecast for a 1.7% gain. It followed a 1.8% rise in March.
A separate index excluding fresh food and fuel, a better gauge of demand-driven price moves, rose 1.9% in April after a 2.4% gain in March.
The Bank of Japan will scrutinise the data at its next policy meeting, where it is widely expected to raise its short-term policy rate to 1% from 0.75%.
Markets have been rattled after the Iran war effectively shut the Strait of Hormuz, driving up crude oil prices and the safe-haven dollar against the yen.
The war has complicated the BOJ's rate-hike plan by adding to inflationary pressure while weighing on an economy reliant on fuel imports.
