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Free AccessMNI BRIEF: BOJ's Tamura Cannot Rule Out Stronger Price Rises
Bank of Japan board member Naoki Tamura said on Wednesday that he cannot rule out the possibility that Japan’s inflation rate will be stronger than expected as the pace of services price rises are accelerating.
“As for the outlook for prices, the year-on-year rise in consumer price index will slow toward the middle of next fiscal year as pass-through of import price rises will wane in addition to the government’s subsides to lower energy prices,” Tamura told business leaders in Maebashi City.
However, corporate pass-through of cost increases is progressing and the momentum for price rises continues, and it should not be ruled out that prices rise upwardly beyond expectations, Tamura said.
He added that whether wages will rise at the same pace of price rises is particularly important point to achieve the price stability target in a sustainable and stable manner.
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