Japan business mood sours on higher costs, BOJ sticks to recovery view

Japanese manufacturers turned less positive about their business conditions in January, a survey showed on Wednesday, even as central bank governor Haruhiko Kuroda stressed the economy was on track for a recovery accompanied by rising inflation.

Along with the potential hit from a spike in COVID-19 cases led by the Omicron variant, companies complained of rising energy and raw material costs that were squeezing profits, the Reuters Tankan poll showed.

The survey highlights the dilemma Japan faces as a country that relies heavily on fuel and food imports, making its economy vulnerable to the type of cost-push inflation now under way.

While rising