TOKYO (Reuters) - Japan's core consumer price index rose 3.2% in January from the previous year to hit a 19-month high, data showed on Friday, reinforcing expectations the central bank will continue to raise interest rates from still-low levels.

The increase in the core consumer price index (CPI), which excludes fresh food prices, compared with a median market forecast for a 3.1% gain and followed a 3.0% rise in December.

Inflation has exceeded the central bank's 2% target for nearly three years, underscoring rising inflationary pressure that has drawn hawkish remarks from Bank of Japan (BOJ) policymakers such as those by board member Hajime Takata on Wednesday.

A separate index stripping away both fresh food and fuel costs, which is closely watched by the BOJ as a better gauge of demand-driven inflation, rose 2.5% in January from a year earlier, the data showed. It was the fastest year-on-year pace since March 2024, when the index rose 2.9%.

The data follow recent steady rises in Japanese government bond (JGB) yields, as markets factor in the chance the BOJ could hike rates more aggressively than initially thought on prospects of sustained wage gains that could spur consumer spending.

The BOJ raised its short-term interest rate to 0.5% from 0.25% in January, reflecting its conviction that Japan was making progress in sustainably achieving its 2% inflation target.

Governor Kazuo Ueda has signalled his readiness to keep raising rates if wages continue to increase and underpin consumption, thereby allowing firms to keep hiking pay.

Japan's economy expanded an annualised 2.8% in the final quarter of last year on robust business expenditure and consumption, shoring up the BOJ's case for more rate hikes.

Annual wholesale inflation jumped to a seven-month high of 4.2% in January and accelerated for the fifth straight month, highlighting persistent price pressures.

A private sector survey showed most economists projecting the next hike to come in the latter half of this year.