Bank of Japan Gov. Haruhiko Kuroda said on Monday that inflation will pick up in line with the central bank's projections, a show of confidence coming days after the BOJ decided to continue using unprecedented monetary easing measures to shore up the economy.

Price gains will gradually gain momentum and rise toward the 2 percent target as it begin to reflect rising labor costs, the BOJ chief said.

"Many Japanese firms have raised wages for their employees but kept the prices of products and services unchanged," Kuroda said in a speech to business leaders in Osaka.