Japan’s key inflation gauge accelerated in August for a fourth consecutive month, hours before the Bank of Japan is scheduled to wrap up its latest policy decision meeting.

Japanese inflation rose slightly in August, with prices up 2.8 percent year-on-year, official data showed Friday, hours before the Bank of Japan was widely expected to leave interest rates unchanged.

The BOJ kept interest rates at 0.25% after August's CPI showed a 2.8% increase, reflecting a cautious approach amid economic concerns.

Japan's core consumer inflation accelerated for the fourth straight month in August and tracked comfortably above the central bank's 2% target, data showed on Friday, keeping alive expectations for further interest rate hikes.

The core consumer price index in Japan, which excludes fresh food but includes fuel costs, increased by 2.8% Y/Y in August 2024, posting the highest reading since February and matching market expectations.