The Bank of Japan is considering revising its inflation forecasts upward, sources familiar with the central bank's thinking have said, in a move that could fuel market speculation that the BOJ is set to shift away from its aggressive monetary easing.

The revisions would include raising its core consumer inflation outlook for fiscal 2022 to the 3% level, the sources said Friday. This compares with the October projection of a 2.9% rise. The BOJ would also raise forecasts for the following two years close to its 2% target from its earlier forecasts of 1.6%.

Japanese households have been hit with price hikes, largely due to the price of oil and other raw material increasing due to increasing global demand and Russia's invasion of Ukraine. The yen's weakness against other major currencies has also lifted import costs.