“Japan's consumer inflation is likely to clearly accelerate due to rising energy, raw material costs,” Bank of Japan’s (BOJ) monetary affairs department head Seiichi Shimuzu said on Wednesday.
Additional quotes
“Japan unlikely to see stagflation-like condition at which prices rise in tandem with contraction in economic growth.”
“Rising commodity, grain costs will push up energy, food prices short-term, hurt economy long-term via hit to household income, corporate profits.”
“Expect Japan's economy to recover on easing strain from pandemic on consumption, support from external demand.”
Market reaction
USD/JPY is trading at 115.90, up 0.21% on the day, as of writing, The pair looks to recapture 116.00, as the market mood remains lifted amid easing Russia-Ukraine worries.
