Japan's Ministry of Internal Affairs and Communications released its inflation data on late Wednesday evening. Japan's national consumer price index (CPI) declined to an annual rate of -0.1% in March from 0.3% in February.

Inflation was mainly driven by declines in fuel, light and water charges, and transportation and communication prices. Fuel, light and water charges slid 8.5% year-on-year in March, while transportation and communication prices declined 3.0%.

Japan's national CPI excluding fresh food fell to an annual rate of -0.3% in March from 0.0%, missing expectations for a drop to -0.2%.

The Bank of Japan's inflation target is 2%.