By Megumi Fujikawa

TOKYO--Japan's consumer inflation gathered pace in April due to higher energy and food prices, although it is unclear if this will pave the way for more monetary tightening by the Bank of Japan.

Consumer prices excluding volatile fresh food rose 3.5% in April from a year earlier, compared with March's 3.2% increase and 3.4% growth expected in a poll of economists by data provider Quick.

Energy prices climbed 9.3% in April, faster than March's 6.6% increase as the impact of government subsidies for electricity and gas costs faded. Food inflation also persisted, with rice prices jumping more than 98%.

Continued inflation at home and strong uncertainty overseas present a policy challenge for the Bank of Japan.

BOJ Gov. Kazuo Ueda has said the bank maintains a stance of raising interest rates further, depending on economic conditions, but also that underlying inflation is still below the 2% target and likely to take longer than previously expected to reach that level.

Given the lack of clarity surrounding the economy, there isn't a clear consensus as to when the next BOJ rate hike will come. Some economists say that the bank may not take action at all this year if trade frictions deepen.

Write to Megumi Fujikawa at megumi.fujikawa@wsj.com

(END) Dow Jones Newswires

May 22, 2025 19:58 ET (23:58 GMT)

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