Consumer inflation in the Tokyo metropolitan area picked up slightly in January, government data showed Friday, supporting the Bank of Japan’s plan to pursue more interest-rate increases.

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.

The Bank of Japan is likely to wait until the summer before it next raises interest rates, according to economists surveyed by Bloomberg. Most Read from BloombergWhat Happened to Hanging Out on the Street?