MNI BRIEF: BOJ Oct Opinions: Board Sees Higher Inflation Rate

Bank of Japan board members see higher inflationary pressure in Japan and they are vigilant against the impact of higher inflation rates on economic activities at the October 27-28 meeting, the summary of opinions at the meeting released Monday showed.

"Inflationary pressure seems to have become stronger than before because firms' inflation expectations and expected growth rate have increased and energy prices may continue to rise, triggered by global actions toward addressing climate change," one member said.

'Underlying inflationary pressure has been increasing in Japan, albeit gradually," another member said, while one other member noted "it is necessary to pay attention to the impact these price rises may have on pent-up demand in terms of the timing of its materialization and the strength."

"The gap in inflation rates between the United States and Japan is mainly due to disparities in services prices, particularly wages. In Japan, labor market conditions need to tighten further ... for wages to be raised. Increases in income and wages are desirable, in that they will encourage households and firms to spend their standby funds," a separate member said.