Japan’s consumer price growth picked up in December, adding to evidence of steady inflation just hours before the central bank announces its rate decision.

Japan's annual rate of consumer price inflation accelerated to 3.0 percent in December from 2.7 percent the month before, government data showed Friday.

It cut the rate 25 basis points in January 2024 but the rate has stayed at 4.5% since, as policymakers have been concerned with the effects of Israel's war in Gaza against Palestinian militant group Hamas that helped to push up inflation, weaken the shekel and raise Israel's risk premium.

The Bank of Japan is expected to raise rates by 25 basis points later in the day as it concludes its monetary policy meeting.