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BOJ must be mindful of inflation overshoot risk

by Mike Robinson

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© Reuters. FILEPHOTO: Man runs by the Bank of Japan (BOJ), building in Tokyo, Japan on July 29, 2016. REUTERS/Kim Kyung-Hoon

TOKYO, Reuters – If raw material prices continue to rise and more companies raise prices, then the Bank of Japan should be aware of potential inflation acceleration.

The BOJ stated in its full quarterly outlook report that the current pass-through of higher raw material prices to consumers is limited to food products.

Following the Tuesday bank policy meeting which ended on Tuesday, the bank released the summaries of its quarterly reports.

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