BOJ seen revising up FY 2022 inflation forecast

Jiji Press

17:30 JST, January 8, 2022

TOKYO (Jiji Press) — The Bank of Japan is seen revising up its inflation forecast for fiscal 2022 from April, reflecting higher crude oil prices and the yen’s weakness.

The revision will be made in the quarterly Outlook for Economic Activity and Prices report to be released after the central bank’s next monetary policy meeting from Jan. 17.

The BOJ currently expects the fiscal 2022 core consumer price index, excluding fresh food prices, to grow 0.9% from the previous year.

An upward revision to the bank’s fiscal 2022 economic growth forecast of 2.9% will also be discussed, in view of economic stimulus measures decided by the government to reduce the impact of the coronavirus crisis.

The core CPI in Tokyo’s 23 special wards for December last year rose 0.5% from a year before, a level unseen in 22 months, according to data released by the internal affairs ministry Friday.