Business · Economy · 47 mins ago
Japan’s central bank sees energy prices pushing inflation higher
Bank of Japan Governor Kazuo Ueda said Japan’s underlying inflation should stay near 2%, the central bank’s target.
He said higher energy prices are starting to affect consumer prices, with price growth expected to speed up early next year.
Ueda said wages are growing at a pace compatible with 2% inflation.
But he said the target has not yet become a norm among the Japanese public, and it is unclear how long inflation will remain at that level.
The Bank of Japan is watching other central banks because their decisions can affect exchange rates, interest rates and asset prices in Japan.
Ueda said unconventional monetary tools could be used again if Japan faces a severe economic shock, though they are not a perfect substitute for cutting interest rates.
If those tools are needed, the bank would aim to limit harm to market functioning while keeping inflation near its target.
Bank of Japan Governor Kazuo Ueda said energy-related price increases were beginning to affect consumer inflation.
He said the bank expects underlying inflation to remain around its 2% target but sees some upside risks.
Ueda said price growth is expected to accelerate early next year.
He said it is unclear how long inflation will stay at the target and that the 2% goal has not yet become embedded in Japanese society.
- Who
- Bank of Japan Governor Kazuo Ueda.
- What
- He said energy prices were beginning to push consumer inflation higher. The bank expects underlying inflation to remain around 2%, with some upside risks.
- When
- November 6, 2026.
- Where
- At an International Monetary Fund-organized seminar. The location is not stated.
- Why
- Energy-related price increases were beginning to affect consumer inflation.
This story does not have two clearly opposing sides.
Ueda said energy-related price increases were beginning to affect consumer inflation.
Ueda said price growth was expected to accelerate.
- Inflation target
- 2%
- Governor
- Kazuo Ueda
- Energy prices
- Beginning to affect consumer inflation
- Expected price growth
- Acceleration early next year
- Published
- November 6, 2026
3 sources
What people are saying
There are some upside risks
We are in an equilibrium, with wages growing at a level compatible with 2% inflation
What they do reveals important information about what they think of their economies, which will have an impact on our economy. That is why we watch their behavior and actions very carefully
I think the important thing would be to keep inflation or underlying inflation around 2% as much as possible