MNI BRIEF: High Chance Core CPI Will Fall Below 2% - Ueda

Bank of Japan Governor Kazuo Ueda on Tuesday told lawmakers the y/y rise in Japan's core CPI rate will fall below 2% towards the middle of this fiscal year.

He noted the key inflation rate will rise again afterward, but heightened uncertainty existed over a future price rebound.

Ueda's remarks follow a spate of higher than normal CPI prints. The Tokyo core inflation rate decelerated to 3.2% y/y rise in May from April's 3.5%, the 12th straight month above the Bank of Japan's 2% target (see: MNI BRIEF: Japan May Tokyo CPI Rise 3.2% Vs. Apr 3.5%). Ueda stated last week y/y core inflation will rise again following what is set to be a dip toward the middle of fiscal 2023 (see: MNI: BOJ's Ueda Uncertain Of H2 2023 Core Inflation Rebound).

Ueda reiterated his weak price view and pledged to continue patiently with easy policy until the Bank achieves its 2% price target, which will take time.