(Bloomberg) — Japan’s inflation will stay above the central bank’s 2% target level in the final three quarters of this year, according to surveyed economists who raised their forecasts again.

According to Bloomberg News, consumer prices, which exclude fresh foods, will increase 2.1% in this quarter and the next quarter compared with a year ago. Then there will be a 2.2% rise in the last three months. 

The upward revisions from the previous survey reflect a pattern in which inflation continues to outpace analysts’ expectations. 

While stronger-than-forecast price growth has led other major central banks to raise interest rates, the Bank of Japan is so far sticking with its view that the current cost-push inflation will cool and rock-bottom rates must be maintained to support a fragile recovery.

According to government data, consumer prices, which exclude fresh foods, increased by 2.1% in April compared with a year ago. This was more than the 2% increase forecasted by economists. That’s the quickest pace since 2008 after excluding tax hike effects. 

Analysts expect a slower economic recovery in the third quarter. Gross domestic product will grow at 4.5% annually, as opposed to 5.2% just one month ago. 

As virus restrictions slowed consumption, and as a result of a ballooning import bill that was inflated by the weak yen, the economy contracted during this quarter. 

Separately, the au Jibun Bank’s purchasing managers index of activity in Japan’s manufacturing sector edged down 0.3 point to 53.2 in May, with China’s lockdowns to contain the coronavirus and sanctions against Russia exacerbating supply chain disruptions and ramping up input costs.

The virus situation in Japan stabilized and a 1 point increase was made to the measure for the service industry.

©2022 Bloomberg L.P.