FOCUS: BOJ undeterred by threat to consumers from above-target inflation
In the eyes of Japanese consumers, the Bank of Japan, the guardian of price stability, may look out of touch with the reality they face in everyday life.
Japan’s core consumer inflation hit a 41-year high of 4.0 percent in December, double the BOJ’s target, and more waves of price hikes await households in the coming months.
The BOJ says it remains committed to its massive stimulus until inflation reaches its 2 percent goal. The current pace of price increases signals the central bank could phase out its easing policy, just as other central banks are raising interest rates to fight inflation. ...