MNI BRIEF: BOJ's Kuroda: Energy Prices Key To 2% CPI Duration

Bank of Japan Governor Haruhiko Kuroda said on Friday that Japan’s consumer price index around 2% will likely last for one year unless energy prices plunge sharply.

Kuroda told lawmakers that the year-on-year rise of core CPI will likely fall as the positive contribution from energy will wane but other consumer prices will likely rise gradually, updating remarks made on Thursday, (See MNI BRIEF: BOJ's Kuroda: 2% CPI Unlikely Sustained Long-Term).

“Prices and wages are very important (to achieve the 2% price target). Unless wages rise, prices will not rise in a stable and sustainable manner,” Kuroda said, (See MNI INSIGHT: Japan Apr CPI Above 2%, But BOJ Easy Policy Stays). On Friday, core May Tokyo CPI was reported up 1.9% on year.