BOJ to talk about pushing the inflation forecast for fiscal 2024 above 2%.

When its policy-setting board convenes the following week, the Bank of Japan is expected to upgrade its outlook for the consumer price index for fiscal 2024 to the 2% growth range, bringing it one step closer to its objective of steady and sustainable price increases.

With the upgrade, the rate of inflation is expected to remain higher than the central bank's target of 2% for the third year in a row.

At its monetary policy meeting on Monday and Tuesday, the BOJ will talk about the fiscal 2024 CPI rate, which is presently expected to be 1.9%. The outcomes will be included in the Outlook for Economic Activity and Prices report, which will be released on Tuesday.

Policy board members provided median estimates in July for the CPI, excluding fresh food, to climb by 2.5% in fiscal 2023 (ending in March 2024), 1.9% in fiscal 2024, and 1.6% in fiscal 2025.

Costs associated with raw resources have led to rising prices; following Russia's invasion of Ukraine in fiscal 2022, the CPI increased by 3%. Even though import prices have leveled off, raw material prices are once again rising due to rising crude oil prices and a declining value of the yen.

According to data released on Friday, the CPI in the 23 Tokyo wards that exclude fresh food increased 2.7% in October, marking the first increase in the growth rate in four months. In addition to efforts by businesses to pass through costs, prices have continued to rise above what the BOJ had anticipated.