Bank of Japan must be mindful of inflation overshoot risk: central bank report

[TOKYO] The Bank of Japan must be mindful of the risk that inflation may accelerate faster than expected if raw material costs continue to spike and prompt more firms to raise prices, the central bank said in a report on Wednesday.

For now, the pass-through of rising raw material costs to consumers has been focused on food products and is not spreading to a broader range of items, the BOJ said in a full version of its quarterly outlook report.

The summary of the quarterly report was released after the bank's policy meeting that ended on Tuesday.

REUTERS