Japan’s core inflation rate, which excludes fresh food but includes fuel costs, slowed to 3% in February from 3.2% in January, but still exceeded forecasts of 2.9%. This marked the second consecutive month that inflation surpassed expectations,

Japan's core inflation hit 3.0% in February and an index stripping away the effect of fuel rose at the fastest pace in nearly a year, a sign of broadening price pressure that reinforces market expectations of further interest rate hikes.

Data released early Friday showed Japan's core inflation, which stripes out prices for fresh food, rose 3% year-on-year in February, moderating from January's 3.2% but beating the consensus forecast for 2.9%. The headline consumer price index eased to 3.7% from 4%.