In January, food prices rose by 7.3 percent in Japan, an inflation rate that has never been seen before

By: Trademagazin Date: 2023. 02. 24. 10:01

In January, food prices rose by 7.3 percent in Japan, an unprecedented rate of inflation Inflation exceeded the target of the Bank of Japan for the tenth consecutive month, which pursues an ultra-loose monetary policy in order to achieve a stable 2 percent inflation rate.

Kazuo Ueda, the incoming governor of Japan’s central bank, told a parliamentary hearing in Tokyo on Friday that the Japanese central bank must maintain ultra-low interest rates to support the fragile economy, warning of the dangers of monetary tightening due to cost-driven inflation. Ueda can replace Haruhiko Kuroda, who has been in the post for ten years, in April. Overall, Ueda wants to represent continuity, said Westpac senior analyst Sean Callow.