31 October 2003, 09:30  BOJ core CPI forecast -0.5% to -0.2% in FY04/05

TOKYO, Oct 31 - The Bank of Japan forecast in a report on Friday that the nationwide consumer price index (CPI) will keep falling slightly this fiscal year and next, although one board member predicted a rise next fiscal year. The central bank's twice-yearly report showed the core forecasts, which exclude the highest and lowest forecasts of the nine-member board, were for falls in the core CPI ranging from 0.5 to 0.2 percent in the fiscal year beginning next April. One member forecast a 0.5 percent rise in core CPI in fiscal 2004. For the current year they forecast a fall of 0.3 to 0.1 percent. The core CPI does not include volatile food products. The report also showed members saw 2.3 to 2.6 percent growth in gross domestic product in the year starting next April and the same range in the current fiscal year.//

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