TOKYO--Cost-push price increases in Japan are spreading from corporate transactions to consumer-facing industries, branch managers of Japan's central bank said Thursday, pointing to broadening inflationary pressures across the country.

Many firms are raising business-to-business prices to pass along higher costs for energy and raw materials, driven by the Middle East conflict and a weaker yen, as well as for shipping and labor, the Bank of Japan said in a statement summarizing its branch managers meeting.

The discussions are closely watched as economists and investors look for hints about the timing and pace of further BOJ action, with policymakers signaling concern about upside risks to prices.

"The move to pass on higher costs is spreading to consumer businesses, with more companies raising retail prices to reflect input costs while gauging consumer sentiment," the central bank said.

With Japanese consumers remaining budget-conscious, some companies are trying to limit price increases and expand their lineups of low-priced goods, the BOJ added.

In its quarterly regional economic report, also released Thursday, the BOJ raised its assessment of two of Japan's nine regions and maintained its view of the remaining seven. It said local economies are recovering despite some weak spots.

After lifting its policy rate to 1.25% last month, the central bank is expected to raise rates again in the near future to combat persistent inflation. The overnight index swaps market is pricing in more than an 80% chance of a December hike.

In a speech earlier this week, Gov. Kazuo Ueda noted the risk that underlying inflation could overshoot the bank's 2% target and reiterated his intention to continue monetary tightening.

The BOJ's policy board is scheduled to hold its next meeting on Oct. 29-30.