Japan inflation rate hits 23-year high

   

Consumer prices in Japan rose at their fastest pace in 23 years in April, following an increases in sales tax.

Prices rose 3.2% compared with the same period last year, beating analysts' forecasts of a 3.1% jump.

The government raised its sales tax rate from 5% to 8% on 1 April.

Japan has been battling deflation, or falling prices, for best part of the past two decades, and policymakers have said that ending that cycle is key to reviving the country's economy.

Falling consumer prices hurt domestic demand as consumers and businesses tend to put off purchases in the hope of getting a cheaper deal later on.