Japan’s key inflation gauge held steady in May thanks in part to government subsidies that kept energy costs down, keeping the Bank of Japan on track for another interest-rate hike later this year.

Core consumer prices, excluding fresh food, rose 1.4% from a year earlier, the Ministry of Internal Affairs and Communications reported Friday. The reading was in line with economists’ expectations and matched the lowest level since 2022.

A measure that excludes both fresh food and energy rose 1.8% from a year earlier, also matching the median forecast.