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.

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 on Friday,