Japan upgrades GDP growth forecast; CPI seen below BOJ target

Tokyo

JAPAN'S government revised up its growth projections for the current and next fiscal years, forecasting the economy to expand 1.9 per cent and 1.8 per cent respectively on the back of steady improvement in domestic demand, the Cabinet Office said on Tuesday.

Consumer inflation is estimated at 0.7 per cent for this fiscal year and 1.1 per cent next, underscoring the challenge for the central bank to accelerate inflation to its 2 per cent target as prices continued to lag an economy growing at a steady pace.