BOJ’s Noguchi: If energy prices rise further, that will push up inflation but weigh on economy

Bank of Japan (BOJ) policy board member Noguchi is making some comments on the impact of higher inflation on the economy, courtesy of rising energy prices.

Key quotes

It'll take some time to stably hit Japan's  inflation  target.

Japan's economy likely to continue recovering as impact of pandemic, supply constraints eases.

Pandemic's impact on consumption, Ukraine crisis among key risks to Japan’s economic outlook.

If energy prices rise further, that will push up inflation but weigh on economy.

Japan's core consumer inflation to accelerate to around 2% from April, may speed up further depending on global commodity price moves.

Japan's worsening terms of trade driven by rising energy and raw material prices with weak yen playing very limited part.

Japan is not experiencing the kind of high inflation seen in many other countries.

Trend inflation excluding energy factors remain very low in Japan.

Most important for BOJ to maintain patiently sustain current monetary easing.

It will take significant time for inflation to stably achieve BOJ’s target.

Energy prices will likely remain elevated for some time, which could heighten sustainability of global inflation.

Global economy experiencing typical cost-push inflation, which hurts economic activity.