Japan’s consumer price growth picked up in December, adding to evidence of steady inflation just hours before the central bank announces its rate decision.

TOKYO: Japan's core consumer prices rose 3.0 per cent in December year-on-year to mark the fastest annual pace in 16 months, likely cementing a central bank rate hike later in the day and retaining bets that borrowing costs will keep rising from ultra-low levels.

Japan's core consumer price index—which includes gasoline prices but does not include fresh food—rose 3% annually in December, reaching its highest level since August 2023, up from 2.7% in November and matching consensus.