MNI BRIEF: BOJ's Kuroda Sees Core CPI Below 2% In Mid-FY23

Bank of Japan Governor Haruhiko Kuroda on Monday repeated his view that the year-on-year rise in the core Consumer Price Index would fall below 2% around the middle of next fiscal year.

Kuroda told lawmakers that Japan’s core CPI rose 4% y/y in December but the rise was due mainly to the pass-through of higher costs caused by the rise of import prices, though the year-on-year rise of import prices was easing.

“Creating a virtuous cycle from wage hikes to price hikes is necessary to achieve price stability target in a sustainable and stable manner,” Kuroda said.

He added that the most important issue is to maintain easy policy not only to firmly support the economy but also to create an environment that enables firms to raise wages. Kuroda also said that Japan can achieve the BOJ's price stability target accompanied with wage hikes, although it would take some time.