Japanese Price Expert Says Inflation Outpacing BOJ’s View

Japan’s inflation is surprisingly strong, increasing the possibility that the Bank of Japan will raise its interest rate by the end of the year, according to one of the country’s leading inflation experts.

“It’s beyond my expectation and very strong this year,” said Tsutomu Watanabe, an emeritus economics professor at the University of Tokyo, in an interview Friday. “There is no mistake that the BOJ will raise its forecast for this fiscal year” in its quarterly outlook report at the end of the month.