The Bank of Japan (BoJ) Deputy Governor Kikuo Iwata said on Tuesday that inflation will likely rise late this year as consumers are expected to start to feel the benefit from lower fuel prices.

"The underlying trend of inflation is improving steadily," he noted.

Iwata also said that Japan's economy continued to recover moderately, and inflation expectations were increasing in a longer view.

The BoJ deputy governor pointed out that monetary easing had intended effects.