Economics
Kuroda's Price Forecasts Are Headed for Another Crash With Oil
- Cheaper mobile phone charges add to the BOJ’s inflation pain
- This may lock Japan’s central bank into stimulus for longer
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The sharp slide in oil prices threatens to halve Japan’s inflation rate over the next six months, while cheaper mobile-phone bills and free nursery education could even push it below zero.
This view from private-sector economists is very much at odds with the Bank of Japan’s forecast for its core inflation gauge to average 1.4 percent in the fiscal year starting in April. It also points to BOJ sticking with its monetary stimulus program for longer.