A leading indicator of Japan's service-sector inflation in January accelerated to 3.1% from a year earlier as prices for a wide range of services continued to rise, keeping alive expectations of further interest rate hikes by the central bank.

Japanese inflation accelerated in January, further pressuring households as prices excluding fresh food rose 3.2 percent on-year, government data showed Friday. Overall, inflation including volatile fresh food prices was up 4.

The level of fresh food prices has risen 71.9% since 2010, about five times more than that of inflation excluding it.