Economics
BOJ Sees Oil Surge Pushing Prices Beyond Forecast, Sources Say
- Cost-push inflation seen as unsustainable, people familiar say
- Bank sees little need for policy normalization, they add
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The Bank of Japan sees the rapid increase in oil prices following Russia’s invasion of Ukraine pushing inflation beyond its latest forecast, adding to the negative factors weighing on a fragile economy, according to people familiar with the matter.
Depending on movements in commodity prices, inflation could temporarily hit 2% this year, the people added. The comments come ahead of a central bank meeting later this month.