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.

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,

Government data on Friday showed Japan’s core inflation jumped to 3.5% in April, its highest in more than 2 years. The rise is attributed to the country’s inclined prices as the central bank considers pausing its rate hike posture to assess the impact of U.S. tariffs.