The headline consumer price index (CPI) for the month rose by 2.7 per cent year on year (YoY), while the core CPI (excluding fresh food) rose by 2.6 per cent YoY, down from a 2.8-per cent February rise.
The core-core index, which excludes fresh food and energy, rose by 2.9 per cent YoY. The core-core inflation rate declined for the seventh straight month in March.
High commodity costs are majorly contributing to rising prices.
It has been two years since the core inflation rate first rose above the Bank of Japan target of 2 per cent, domestic media outlets reported.
Bank of Japan governor Kazuo Ueda recently said that the central bank may raise interest rates to contain inflation caused by a weaker yen as domestic concerns grow about a fall in the currency.
"The Bank of Japan could take monetary policy action if the weaker yen increases the rate of inflation and starts impacting the economy to a significant extent," Ueda told a news conference following the meeting of G20 finance chiefs.
The yen fell to near 155 versus the US dollar from around 147 about a month ago.
ALCHEMPro News Desk (DS)
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