Japan's core inflation eased to a four-year low in April, driven by government subsidies. However, rising energy costs due to the Iran conflict are expected to push inflation higher, prompting speculation of further monetary tightening by the Bank of Japan.

Japan's economic outlook is facing growing uncertainty as elevated global oil prices and instability in the Middle East continue to fuel inflation and weigh on domestic demand,…

Core inflation — which strips out prices of fresh food — was lower than the 1.7% expected by economists polled by Reuters and below the 1.8% reading in March.