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MNI BRIEF: BOJ Opinions: Wage-Price Cycle Possible

TOKYO (MNI)

One Bank of Japan board member at the July 20-21 meeting said that a virtuous cycle between wages and prices is expected to be achieved, the summary of opinions released Friday showed.

“Recent price hikes by various firms indicate that a change may have arisen in the conventional mindset among firms toward raising prices," another member said, but one said "prices have risen recently due to higher import prices. However, achieving the price stability target in a stable manner is difficult given developments in the output gap and inflation expectations.”

Another member said CPI gains are likely to wane as energy costs reduce.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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