BOJ Warns of Inflation Pressure from Oil and Weak Yen
The Bank of Japan reports that oil prices and a weak yen are driving inflation as firms hike prices. Underlying inflation is rising toward the 2% target.
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The Bank of Japan released a staff paper on Monday indicating that Japan may experience stronger upward pressure on its underlying inflation rate due to rising oil prices and a weakening yen. This trend is increasingly driven by a shift in corporate behavior, as firms move away from their previous reluctance to adjust prices in the face of rising costs.
