BOJ Says Japan Economy Recovering Moderately as Inflation Expectations Edge Up

The Bank of Japan said in its latest report that the national economy is "recovering moderately," although pockets of weakness remain. The central bank noted a gradual improvement in consumption and expects household spending to regain a modest upward trend in the coming months. Inflation expectations are "rising moderately," the BOJ added, citing earlier spikes in food prices—including rice—that had weighed on household sentiment. The central bank believes the impact of those food-price increases is likely to dissipate, but it warned that shifting perceptions of prices could still influence the overall inflation profile.