BoJ's Himino Says Price Rises Reflect Both Supply and Demand Factors

Bank of Japan policymaker Kazuo Himino said that the current price increases in Japan reflect more than just supply-side pressures. He pointed to robust demand underpinned by rising corporate profits, wage growth, and AI-driven demand as contributing factors.

The remarks suggest the central bank sees a broadening of inflation drivers beyond the temporary supply shocks that initially pushed prices higher. Himino's assessment could influence the BoJ's policy normalization timeline, as sustained demand-led inflation would support a gradual exit from ultra-loose monetary settings.