Japan inflation slows in April

TOKYO, May 24 (AFP): The pace of Japanese inflation slowed in April as gas bills fell, government data showed Friday, raising questions about when the Bank of Japan will hike interest rates again.

The Consumer Price Index excluding volatile fresh food prices came in at 2.2 per cent, compared with the 2.6 per cent logged in March by the internal affairs ministry.

The figure was in line with market expectations and comes even as the weak yen inflates prices for imported goods. The data "probably reflects a move by companies to restrain price hikes in response to sluggish consumer demand", Taro Kimura from Bloomberg Economics said.

"But the core gauge is still above the Bank of Japan's two per cent target- and the latest data is unlikely to deter the central bank from normalising policy," it said.