BOJ Governor Ueda Flags Mounting Inflation Risks as Energy Costs Accelerate Consumer Prices

Bank of Japan Governor Kazuo Ueda warned that upside risks to inflation are mounting due to rising energy costs, with consumer price growth projected to accelerate into early next year. Speaking at an IMF event, Ueda noted that while underlying inflation is expected to remain near the 2% target, headline consumer inflation is currently hovering around 3%. Ueda highlighted that wage growth is now consistent with sustaining 2% inflation, shifting the central bank's focus to anchoring price growth. The hawkish remarks support expectations of monetary policy normalization ahead of the BOJ's December 18 meeting.