BOJ Governor Warns Oil-Driven Inflation May Be Prolonged

In a recent statement, Bank of Japan (BOJ) Governor Kazuo Ueda issued a warning about the impact of rising oil prices on the economy. He stressed that inflation stemming from surging energy costs may not be a short-term phenomenon and could potentially persist.

The remarks come amid ongoing volatility in global oil prices, which is putting pressure on production and consumer costs in many countries, including Japan. According to Ueda, if oil prices remain elevated, they will directly affect the consumer price index and heighten inflation expectations among households and businesses.

The BOJ chief’s assessment was made as the central bank closely monitors domestic inflation trends to calibrate monetary policy. Persistent inflation could force the BOJ to reconsider the tightening path it has been pursuing since 2024.