After a respite in the first quarter, Japanese consumer prices index (CPI) inflation surged as expected in April, returning to 40-year highs and putting additional stress on the Bank of Japan (BOJ) to tighten policies this year.

In April, national CPI inflation reached 3.5%, exceeding predictions of 2.5% and the previous month’s reading of 3.2%. In April.

Japan’s reliance on imports, from fuel to vital food supplies, has been the most significant contributor to inflation over the last year,

Inflation rose above the Bank of Japan’s 2% annual target, raising anticipation that. The central bank could change its yield control policy later this year under incoming Governor Kazuo Ueda.

Nonetheless, with inflation heading higher after easing slightly in the 1st quarters of 2023. The BOJ is under increased pressures to tighten policy.

The Japanese economy increased faster than projected in the first quarters, according to figures released earlier this week.