Bank of Japan board members are likely to pay closer attention to price trends at a meeting in January as they consider whether it still makes sense to flag downward risks for inflation.
"Inflation expectations, including medium- to long-term ones, have risen recently, and inflationary pressure is expected to strengthen,” one of the board’s nine members said at the December policy meeting, according to an opinion summary released by the central bank on Monday.
"As the government encourages firms to increase wages, attention is paid to their rates of increase for next year onward,” the member said.