The country’s economy expanded in a much stronger than expected annualised rate of 4% in April to June, its longest uninterrupted growth run in a decade, according to government figures out today.

It was the biggest increase since January to March 2015 and out-did the expected growth, which had been estimated to stand at 2.5%.

The Bank of Japan is expected to improve in coming quarters leading to hopes that the tight labour market will start boosting wages and consumer spending, which will make it easier to generate sustained inflation.

Hidenobu Tokuda, senior economist at Mizuho Research Institute, said: “The engines of consumer spending and capital expenditure both fired well in the second quarter, and that's why domestic demand was so strong.”

Adding: “The pace of growth may moderate slightly, but we are still in recovery mode. This is a positive development for inflation.”

The economy grew for six straight quarters in April-June. The last time the economy had a run of six consecutive quarters of growth was January-March 2005 through April-June 2006.