There’s little reason to expect above-target inflation to be sustained in Japan. Wage growth remains far below the levels seen in other developed economies and remains far too low to generate second-round inflationary pressures. With Governor Ueda downplaying the recent acceleration in the Bank’s underlying measures of inflation, the risk that intensifying price pressures over the short-term will force a pivot away from ultra-easy policy is low.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services