Japan's nationwide core consumer price index rose 0.9 percent last month from a year ago. That's the same pace as in December, and still far from Bank of Japan's 2 percent target.

Prime Minister Shinzo Abe called on companies to raise wages by at least 3 percent to spur consumer spending. But many firms have been reluctant to do so, citing uncertainty over inflation numbers and other data. Experts say a pick-up in service inflation won't happen this year if wage growth stays muted. The lack of growth also means the Bank of Japan cannot shift away from its stimulus policies yet.