The Bank of Japan is expected to raise its inflation forecasts this month to show prices exceeding its 2% target for two straight years, three people familiar with the matter said, complicating its efforts to keep monetary policy accommodative.

In fresh quarterly growth and inflation forecasts due at its two-day policy meeting ending on Oct. 31, the BOJ is set to raise its core consumer inflation forecast for the year ending in March 2024 to near 3% from the current 2.5% projection made in July, the sources said.

It is also seen upgrading its forecast for 2024 from the current 1.9%, to at or above 2.0%, as recent rises in oil costs are expected to push up utility bills, they said.