Bank of Japan Gov. Haruhiko Kuroda is facing the prospect of hitting the wrong kind of 2% inflation after nine years of trying, an outcome that will complicate his efforts to keep stimulus rolling.
More economists are now predicting core consumer prices will rise at a pace of 2% or more at some point this year as energy prices surging on the war in Ukraine, a weakening yen and stabilizing phone charges feed inflation.
The BOJ is expected to keep all its policy settings on hold at this week’s central bank meeting, just a couple of days after the Federal Reserve is poised to raise U.S. interest rates to help tame accelerating prices.