The Japanese Consumer Price Index (CPI), from which fresh food prices are excluded, but which includes energy items, grew by 4.3% in April, according to figures announced by the Japanese government early this morning, Friday, May 19, compared to 3.1% in March, in line with market expectations.

In the details, the service inflation index rose to 1.7% in April from 1.5% in March, while food prices jumped by 9% from 8.2%.

The rise in inflation, much higher than the Bank of Japan’s target of 2%, raised the market’s expectations that the Bank of Japan and the new governor, Ueda, would amend its current stimulus policy, which supported the yen’s gains this morning from its highest levels this year.