The Bank of Japan on Thursday upgraded its assessments for four of the country's nine regional economies as activity continued to pick up with no antivirus curbs in place, but higher inflation is casting a pall over the outlook for consumption.

In its quarterly report, the BOJ said many regional economies are either "picking up" or "picking up moderately," helped by the easing of supply constraints and revived activity despite the coronavirus pandemic.

Kanto-Koshinetsu, which includes Tokyo, and the Kinki region centered on Osaka were among the upgraded areas.