By Leika Kihara
TOKYO (Reuters) -Bank of Japan Governor Kazuo Ueda said the central bank is aiming for moderate inflation accompanied by wage rises and economic improvement, signaling that its goal aligns with Prime Minister Sanae Takaichi’s focus on reflating growth.
While demand for food and other non-durable goods is weakening, domestic consumption has been resilient due to rising household income, Ueda told parliament on Thursday.
A tight job market is also pushing up pay and sustaining a moderate cycle of rising wages and inflation, he said, adding a gradual economic recovery is leading to price rises not just for food but for other goods and services too.
“When we look at underlying inflation that strips away temporary factors, it is gradually accelerating toward our 2% target,” Ueda said, suggesting that Japan was making progress in meeting the conditions for raising interest rates.
(Reporting by Leika Kihara; Editing by Jacqueline Wong and Muralikumar Anantharaman)
