Japan's consumer inflation experienced a slight acceleration in June, paving the way for the nation's central bank to pursue additional interest rate hikes.

Government data released on Friday revealed that the core consumer price index, which excludes fresh food, rose by 1.6% in June, a pickup from the 1.4% increase recorded in May. This figure aligns with the average forecast from a survey of economists.

Economists highlighted that oil and food costs remain pivotal factors influencing the overall price trajectory. They further noted that these prices are likely to continue being affected by a complex interplay of elements, including the situation in the Middle East, the weakening yen, government energy subsidies, rising packaging costs, and planned reductions in food sales taxes.

Last month, the Bank of Japan raised its policy interest rate to 1%, marking the highest level in 31 years. This move came as the policy board grew increasingly concerned that rising oil prices could push Japan's underlying inflation rate above the central bank's 2% target.

Bank of Japan policymakers have indicated that the effects of the Middle East conflict and the subsequent surge in oil prices could begin to materialize during the summer. The central bank is scheduled to release its latest economic growth and inflation forecasts next week, alongside its interest rate decision.