The Bank of Japan (BOJ) warned of rising inflationary pressures as Japanese corporations raise prices and pay at unprecedented rates.

The central bank noted that Japan’s inflation is driven by goods prices rather than wage pressures, unlike the US and Europe.

The BOJ’s decision to adjust its bond yield control policy and allow long-term interest rates to rise with inflation prompted price and wage forecast assessments.

The bank also noted that inflation expectations were “showing signs of re-accelerating,” indicating rising concern about expanding inflationary pressure.

The BOJ’s inflation expectations determine the speed at which it may end its controversial bond yield control program.