Senior BoJ Official:
- Japan's consumer inflation is likely to hover around 2% for some time from April onward
- price rise must be accompanied by increases in corporate profits, wages for inflation to sustainably achieve 2%
- cost-push inflation alone won't sustainably push up Japan's price growth, could weigh on trend inflation by wieghing on the economy
Cost-push inflation was the subject of some comments out Japan yesterday also:
- "It's hard to tighten monetary policy to deal with cost-push inflation, which means monetary policy must remain loose," said deputy chief cabinet secretary Seiji Kihara, who is considered among the premier's closest aides.
You can check out more on what cost-push inflation is here:
- Cost-push inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials.
- Cost-push inflation can occur when higher costs of production decrease the aggregate supply (the amount of total production) in the economy.
Earlier:
