The Bank of Japan raised its inflation forecasts for 2023 in its latest quarterly outlook report, expecting that its core inflation rate for its fiscal year 2023 will come in at 2.4% to 2.7%.
Japan’s financial year runs from March to March the next year.
This is higher than the 1.7% to 2% forecast in the April quarterly outlook report. The core inflation rate strips out the price for fresh food in the consumer price index.
The so called “core-core” inflation rate, which strips out prices of fresh food and energy and that the BOJ uses as a reference, is now expected to come in at 3.1% to 3.3%, compared to 2.5% to 2.7% in its April forecast.
The central bank explained that the projected core inflation in 2023 is “significantly higher”, mainly as cost increases led by the past rise in import prices have been passed on to consumer prices to a greater extent than expected
CNBC