Policymakers at the Bank of Japan are expected to discuss raising their annual inflation outlook to the two-percent range later this week.

The BOJ is due to start its two-day policy board meeting from Wednesday.

Prices of crude oil, wheat and other raw materials are soaring globally, due to the impact of the Russian invasion of Ukraine.

Policymakers projected back in April that the consumer price index would rise 1.9 percent in fiscal 2022. Raising the outlook would mean the figure hitting two percent -- which is the target the BOJ set in 2013.

But the policymakers believe current price rises would weigh on both household incomes and corporate earnings. That's because the inflation has not come with growth in wages or private demand.

In light of this, they are likely to agree to maintain the current massive monetary easing measures to prop up the economy -- in line with a position advocated by BOJ Governor Kuroda Haruhiko.

A widening gap in interest rates between Japan and the United States has led to a sharp depreciation of the yen against the dollar.

BOJ policymakers will discuss what impact the weaker yen, as well as the country's resurging coronavirus infections, may have on the economy and price trends.