Bank of Japan Governor Kazuo Ueda said the central bank is working to secure a stable, wage-supported inflation cycle as it guides the economy toward steady, broad-based growth. Speaking Wednesday, Ueda pointed to resilient consumption driven by stronger household incomes and improving labour-market conditions, and noted that underlying inflation is gradually accelerating toward the BOJ’s 2% goal.
Ueda stressed that it remains difficult to neatly distinguish between cost-push and demand-driven inflation, though he described recent food price increases as largely one-off, linked to higher raw material costs. At the same time, he said the broader rise in prices for goods and services reflects companies passing along increased wage costs. With the job market continuing to tighten, Ueda said wages are rising more consistently, helping create the “moderate cycle” of income gains and inflation the BOJ views as essential for normalising policy.
