(Bloomberg) — The Bank of Japan may increase its forecast for inflation to reflect higher material costs when the board meets later this month, the Yomiuri newspaper reported, without saying where it got the information.
The central bank’s outlook for price trends for the fiscal 2022, currently at 0.9%, will be raised to 1% or higher, according to the report. The board is scheduled to hold a policy meeting on Jan. 17 and 18, when it is expected to its review quarterly guidance on prices.
The possible revision is due mainly to the supply-chain disruptions triggered by the Covid-19 pandemic, the paper said. Energy prices to produce and ship food, and gas and raw materials are rising, while import costs have also been hit the recent weakness in the Japanese currency.
Read more: BOJ Is Said to Mull Changing Long-Held View on Price Risks (2)
The BOJ is likely to decide on continuing the current easing measures, the paper said.
©2022 Bloomberg L.P.
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