Institution: Bank of Japan raises alert over lagging behind inflation situation

Golden Ten Data reported on April 28 that Naomi Muguruma, a strategist at Mitsubishi UFJ Morgan Stanley Securities, stated that the Bank of Japan appears to be increasingly wary of the risk of “falling behind the curve” regarding inflation. In a report released on Tuesday, the Bank of Japan said that, given that underlying consumer inflation is gradually approaching the 2% target and companies are becoming more willing to pass higher costs on to wages and prices, it is necessary to avoid runaway inflation, which could drag down the economy. The strategist noted: “This suggests that even if the economy slows due to the impact of Middle East conflicts, the Bank of Japan’s path to achieving the 2% inflation target will not change significantly.”