Japanese national flag is hoisted atop the headquarters of Bank of Japan in Tokyo, Japan September 20, 2023.
"It's true the impact of elevated global inflation is reaching Japan's economy with consumer inflation exceeding the BOJ's 2% target since the spring of 2022," Noguchi said, according to the text of his speech posted on the BOJ's website.
"But the rise (in inflation) is mostly due to cost-push factors amid higher import prices," contrary to the wage-driven price increases seen in the United States and Europe, he said.
"To achieve our 2% inflation target, we must see price rises backed by sustained wage increases," Noguchi said.
With inflation exceeding the BOJ's 2% target for more than a year, market expectations are heightening that the central bank will exit ultra-loose monetary policy next year.
Issei Kato, Asahi Noguchi, Noguchi, we've, Kazuo Ueda, Leika, Jonathan Oatis
Bank of Japan, REUTERS, Rights, Thomson
Tokyo, Japan, United States, Europe