Japanese consumer prices surged to another 10-year high in February while unemployment rose, squeezing Japanese disposable incomes and intensifying concerns that economic growth in the country is fading out.

Core consumer prices, excluding fresh food, rose a faster-than-expected 1 per cent from the year-earlier month, government data showed. However, prices fell 0.1 per cent after removing energy and food costs, suggesting deflation remains entrenched in the domestic economy.