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Despite continued economic growth, the core Consumer Price Index remains at a modest 2.6%, according to the government's latest reading.
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Analysts surveyed by MarketWatch look for the overall and core consumer price index to show a 0.2% rise in inflation.
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The rise in Japan's core consumer price index in April, which excludes food prices, was largely in line with expectations.
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The core Consumer Price Index, excluding the volatile food and energy sectors, rose 0.3% in June for the second straight month.
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The government reported that the core Consumer Price Index rose just 0.2% in December, which was right in line with expectations, indicating that inflation remains in check.
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Separate figures showed that Japan's core consumer price index fell 0.4% in April from a year earlier, indicating that the Bank of Japan is still far from its goal of achieving steady 2% price growth to overcome years of deflationary pressures.
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Core inflation, as measured by the CPI (consumer price index, scheduled for release on Thursday), should remain in the 0% to 0.1% range in coming months, the analysts forecasted.
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In November, the consumer price index fell unexpectedly by 0.2%, while the core CPI, which excludes volatile food and energy prices, fell 0.1%--indicating that inflation levels are at a 38-year low.
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The British Consumer Price Index (CPI) was right in line with expectations at 3.2% and the Core CPI reading surprisingly jumped to 3.1%.
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