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MNI BRIEF: BOJ's Nakagawa Sees Japan Core CPI Rise Near 2%

TOKYO (MNI)

Bank of Japan board member Junko Nakagawa said on Thursday said that the core consumer price index may rise close to 2% briefly in or after April as the impact of cheap mobile phone costs wanes.

But the rise is not expected to bring any changes to easy policy.

Even if the core CPI rises to near 2%, “it is important that the price rise involves economic fundamentals, such as causing a sustainable rise,” Nakagawa told business leaders in Kyoto City via an online, see: MNI INSIGHT: BOJ Fears Inflation Will Erode Demand Bounce-Back.

Nakagawa added there is a probability that the pace of price rise will slow if not accepted by households. BOJ officials are focused on whether wages will be raised sufficiently to absorb the impact of higher food and energy costs.


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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