An uptick in inflation in the Tokyo metropolitan area and solid outturns in other key Japanese economic data support the Bank of Japan’s plan to pursue more interest-rate increases.

Consumer prices excluding fresh food in the capital climbed 2.5% in January from a year earlier, the fastest pace since last February, the internal affairs ministry said Friday. Overall price gains also sped up to 3.4%, the fastest clip in nearly two years, as the cost of fresh food jumped.

Core inflation in Japan's capital hit 2.5%, marking the fastest annual pace in nearly a year, well exceeding the central bank's 2% target and keeping alive market expectations for further interest rate hikes.

Tokyos consumer price index (CPI) inflation accelerated in January, reaching a near two-year high as strong private spending sustained price growth. The headline CPI rose 3.4% year-on-year, up from 3% in December,