Japans inflation outlook is becoming increasingly sensitive to import costs, yen movements and supply shocks, raising concerns at the Bank of Japan. Policymakers are assessing whether these pressures could become persistent and influence inflation expectations, as the central bank weighs further rate hikes amid changing domestic and global economic conditions.

Future policy path in focus as inflation fears reignite and bonds sell off globally

TOKYO, Sept 14 : Japan saw inflation spike due to rising import costs and currency shocks, suggesting such price reactions needed to factor into monetary policy considerations, a…