The Bank of Japan is projecting core inflation hovering around 3%, well above its 2% target, for two years in a row under a risk scenario of elevated oil prices and a weakening yen, highlighting the economy's vulnerability to an energy shock. While BOJ said the risk of a wage-price spiral remains limited for now, it warned higher oil costs could increasingly feed through as firms more actively pass on raw material prices, a complete version of its quarterly report released on Thursday showed.