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MNI POLICY: BOJ Mulls Underlying Inflation Rework

The BOJ is looking at its view of underlying inflation.

MNI (TOKYO) - Bank of Japan officials are considering the release of a revised inhouse calculation of underlying inflation which more accurately reflects households’ experience, particularly of rising food prices, but while the new gauge is likely to be higher than the currently available estimate it will not change BOJ rate hike plans, MNI understands.

The new index will combine a composite index of inflation expectations, and its calculation will incorporate estimates of the Phillips curve over time. The BOJ could release it as early as the May 1 Board meeting, when it publishes its Outlook Report with its first FY2027 forecasts.

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MNI (TOKYO) - Bank of Japan officials are considering the release of a revised inhouse calculation of underlying inflation which more accurately reflects households’ experience, particularly of rising food prices, but while the new gauge is likely to be higher than the currently available estimate it will not change BOJ rate hike plans, MNI understands.

The new index will combine a composite index of inflation expectations, and its calculation will incorporate estimates of the Phillips curve over time. The BOJ could release it as early as the May 1 Board meeting, when it publishes its Outlook Report with its first FY2027 forecasts.

Keep reading...Show less