BOJ governor, Haruhiko Kuroda, speaks in parliament
- Sharp rise in US inflation partly due to base effects of last year’s oil price drop
- Closely watching US economic developments, inflation and its impact on Japan in guiding monetary policy
Base effects or not, the report yesterday was sizzling and is one point in the corner of inflation. The question now for the Fed is how many more readings like that can they keep passing on as “transitory”? That is something not even Kuroda can answer for now.