Bank of Japan Board Member Observations on Inflation

TOKYO (Reuters) – Bank of Japan board member Junko Koeda expressed her concerns regarding potential second-round effects on underlying inflation stemming from recent increases in rice prices, as reported by Bloomberg News on Wednesday.

In a Monday interview, Koeda noted the difficulty in predicting when the BOJ might resume interest rate hikes, citing uncertainty over the economic outlook. She remarked, “Recent hard data on inflation shows prices of rice and other food items are rising more than expected compared with the time of the BOJ’s May meeting, so I am watching developments carefully.”

Koeda attributed the main drivers of Japan’s consumer inflation, currently around 3%, to cost-push pressures from rising food costs. Despite this, she mentioned the BOJ’s weighted median average remains below the central bank’s 2% inflation target.

Additionally, Koeda stated that she is “keeping an eye out” on how shifts in rice prices could impact household inflation expectations and underlying inflation, as reported by Bloomberg.