Japan's consumer prices, excluding fresh food, could stay below the Bank of Japan's 2% target until November, when government energy subsidies expire, says Okasan Securities economist Ko Nakayama. While rising oil prices will gradually push up logistics and packaging costs from the summer, falling rice prices will help cap near-term inflation, he says. However, that doesn't necessarily mean the timing of the central bank's next interest-rate increase will be delayed, he says. "Looking at the underlying inflation rate emphasized by the BOJ, the price trend is likely to rise steadily as the pass-through of energy and raw material costs, driven by the Middle East conflict, continues," he adds. (megumi.fujikawa@wsj.com)
Dow Jones Newswires
Japan CPI Could Stay Below BOJ's 2% Target Until November — Market Talk
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Japan's consumer prices, excluding fresh food, could stay below the Bank of Japan's 2% target until November, when government energy subsidies expire, says Okasan Securities economist Ko Nakayama. While rising oil prices will gradually push up logistics and packaging costs from the summer, falling…