A leading indicator of Japan's service-sector inflation hit 3.1% in April, data showed on Tuesday, keeping alive expectations of further interest rate hikes by the central bank. Service-sector inflation is being closely watched by the Bank of Japan for clues on whether prospects of sustained wage gains will prod firms to continue raising prices,

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.

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,