DHAKA: Japan’s government expects the economy to grow 1.5 percent in fiscal 2015 after adjustments for price moves, a slight upgrade from its previous forecast of 1.4 percent growth, due to an expected acceleration in consumer spending.

The government forecast overall consumer prices to rise only 1.4 percent in fiscal 2015 in a sign of the difficulty the Bank of Japan faces in meeting its 2 percent inflation target.

Japan prime minister Shinzo Abe’s cabinet will use these forecasts to guide its fiscal and economic policies as the government tries to accelerate growth after a surprise recession last year.

The government previously forecast the economy would grow a real 1.4 percent in the fiscal year starting from March, but it raised its forecast after delaying an increase in sales tax originally scheduled for October.

BDST: 1632 HRS, JAN 12, 2015