Core inflation in Japan's capital hit 2.5 per cent, marking the fastest annual pace in nearly a year, well exceeding the central bank's 2 per cent target and keeping alive market expectations for further interest rate hikes.

As time goes on, the BOJ’s rate increases appear to be having a stronger impact on people’s everyday lives, shifting from more abstract concepts to more concrete effects.

Consumer inflation in the Tokyo metropolitan area picked up slightly in January, government data showed Friday, supporting the Bank of Japan’s plan to pursue more interest-rate increases.