Japan's core consumer prices rose 3.2 percent on year April, marking the fastest rise in 23 years after an increase in the country's sales tax boosted prices, data on Friday showed.
The rise in the core consumer price index (CPI), which strips out volatile food prices but includes oil products, was above analyst forecasts in a Reuters' poll for a 3.1 percent rise and a 1.3 percent increase in March.
"I think deflation is dead (and the) structural bear market that people have been watching over the past decade is also dead," John Vail, chief global strategist, investment strategy group at Nikko Asset Management, told CNBC.
"There will be cycles up and down going forward, according with the global cycle, but essentially you've got a reflationist central bank now," he added.
The Bank of Japan aggressively pumped money into the economy over the past year in a bid to overcome deflation.