Japan c.bankers debated rising inflationary pressure at Dec meeting – summary

Author of the article: TOKYO — Bank of Japan policymakers discussed recent rising inflationary pressures that could force them to alter their view the country remained vulnerable to the risk of deflation, a summary of opinions at their December meeting showed on Monday. While consumer inflation remains stuck around zero, prices may gradually accelerate reflecting…
Japan c.bankers debated rising inflationary pressure at Dec meeting – summary

Author of the article:

TOKYO — Bank of Japan policymakers discussed recent rising inflationary pressures that could force them to alter their view the country remained vulnerable to the risk of deflation, a summary of opinions at their December meeting showed on Monday.

While consumer inflation remains stuck around zero, prices may gradually accelerate reflecting rising energy costs, one of the BOJ’s nine board members was quoted as saying.

“As wholesale prices rise at a record pace reflecting higher commodity costs, consumer inflation is gradually facing upward pressure,” according to another opinion in the summary.

Some board members also pointed to changes in companies’ inflation outlook and price-setting behavior, with more firms passing on higher costs to consumers, the summary showed.

“In the next quarterly report due in January, it’s necessary to examine whether the current assessment – that risks to prices are skewed to the downside – remains appropriate,” one member was quoted as saying at the Dec. 16-17 policy meeting.

The opinions highlight a growing view within the BOJ board that rising global inflation is starting to spread in Japan, and could lead to an upgrade in the BOJ’s price forecasts at next month’s rate review.

At the Jan. 17-18 meeting, the BOJ will conduct a quarterly review of its growth and inflation forecasts. In current projections, the BOJ expects core consumer inflation to hit 0% in the current fiscal year ending in March, followed by a 0.9% rise in fiscal 2022 and 1.0% increase in fiscal 2023.

Japan has not been immune to global commodity inflation, with wholesale prices rising a record 9.0% in November.

But consumer inflation is stuck around zero, as firms remain cautious about passing on costs to consumers on concerns that households may hold back on spending.

The core consumer price index (CPI), which excludes volatile fresh food but includes oil costs, rose 0.5% in November from a year earlier, marked the biggest rise in nearly two years on surging fuel costs.

With inflation staying distant from its 2% target, however, the BOJ has stressed its readiness to keep monetary policy ultra-loose even as other major central banks start to dial back crisis-mode policies.

(Reporting by Leika Kihara; Editing by Sam Holmes)

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Macau steps up COVID testing as infections surge
Read More

Macau steps up COVID testing as infections surge

Author of the article: HONG KONG — Macau kicked off a new round of COVID-19 testing for its more than 600,000 residents on Monday, as officials in the world’s biggest gambling hub raced to limit spiraling infections in the city’s worst outbreak since the pandemic began. All residents face three rounds of tests this week,…
Cattle, hog futures climb on U.S. hot spell, firm meat prices
Read More

Cattle, hog futures climb on U.S. hot spell, firm meat prices

Author of the article: CHICAGO — Chicago Mercantile Exchange live cattle futures rose on Monday on spillover strength from outside markets including Wall Street, as well as firm wholesale beef prices and worries about hot weather stressing cattle in the Plains and Midwest, traders said. CME August live cattle futures settled up 0.700 cent at…
Zenith Epigenetics Announces Dosing of First Cancer Patient with a Combination of ZEN-3694 + Bristol Myers Squibb’s Immune Checkpoint Inhibitor OPDIVO
Read More

Zenith Epigenetics Announces Dosing of First Cancer Patient with a Combination of ZEN-3694 + Bristol Myers Squibb’s Immune Checkpoint Inhibitor OPDIVO

National Cancer Institute Sponsored Phase 1/1b clinical study to test combination of epigenetic and immune-oncology therapies in solid tumors and ovarian cancer Author of the article: CALGARY, Alberta, Feb. 22, 2022 (GLOBE NEWSWIRE) — Zenith Epigenetics Ltd. (“Zenith” or the “Company”) announced today the dosing of a first patient with a combination of ZEN-3694 (BET…