High expectations could be holding Japanese inflation down, Shirai warns
High household inflation expectations are a factor holding down actual inflation
The Bank of Japan (BoJ) may need to do more to break free of the public's tendency to overestimate inflation, which could be depressing price growth, policy board member Sayuri Shirai said on November 20.
Households in both Japan and the US tend to overestimate the level of inflation, Shirai said, although the effect seems to be stronger in Japan.
In both countries, stagnant wages are usually correlated with a stronger upward bias in inflation expectations, she told a conference organised by the
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