Japan’s inflation surged in January, with consumer prices rising 4% year over year—the highest level since early 2023. This has intensified pressure on the Bank of Japan (BOJ) to tighten its ultra-loose monetary policy.

Japan's core consumer inflation hit 3.2% in January for its fastest pace in 19 months, data showed on Friday, reinforcing expectations that the central bank will keep raising interest rates from levels still seen as low.

Core inflation — which excludes prices of fresh food — rose to 3.2% from 3% in the prior month and beat economists' expectations of 3.1%, according to a Reuters poll.

Japans core consumer price index (CPI) rose 3.2% year-over-year in January, reaching a 19-month high, exceeding the market forecast of 3.1% and Decembers 3.0% gain. The surge reinforces expectations that the Bank of