Japan's inflation grew 3.6% year on year in March, marking three straight years that the headline inflation figure is above the Bank of Japan's 2% target.

Japan's core inflation accelerated in March due to persistent rises in food costs, data showed on Friday, complicating the central bank's task of weighing mounting price pressures against risks to the economy from higher U.

Bank of Japan Governor Kazuo Ueda said on Thursday that Japan's real interest rates remain very low. Ueda further stated that the central bank will increase the rate if the economic outlook is achieved.