Bank of Japan officials are likely to consider raising at least one of their inflation forecasts at a policy meeting later this month, after rice and food-related prices rose more than expected, according to people familiar with the matter.
The central bank will probably weigh increasing its key price forecast from 2.2% for this fiscal year after food inflation proved stronger than they expected at the beginning of May, when the last quarterly outlook report was released, according to the people. Higher oil prices provide another reason for considering an upward revision, they said.
The yen briefly strengthened against the dollar following the report, while Japan’s bond futures dipped.
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