Economics
Japan Economists Forecast Biggest Inflation Gains Since 1991
- Citi and SMBC Nikko see core-CPI at 3% or more by year-end
- Wave of food price hikes will continue into autumn: Citi
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Some Japan economists are revising up their inflation forecast by predicting a continued acceleration to above 3% by the end of this year, suggesting more communication challenges ahead for Bank of Japan Governor Haruhiko Kuroda’s final months.
“We raise our CPI outlook as it has become clear that the wave of food price hikes will continue into autumn, likely exceeding our assumed scope and magnitude,” Citigroup economists Kiichi Murashima and Katsuhiko Aiba wrote in a report Friday.