Kazuo Ueda warned that central banks should not assess oil price movements in isolation, arguing that temporary energy shocks can evolve into persistent inflation if they begin influencing wages, consumer expectations, and corporate pricing behavior, according to a report by Reuters.
Speaking at a conference hosted by the Bank of Japan and its think tank, the Institute for Monetary and Economic Studies, Ueda said the impact of oil price spikes depends heavily on the economic environment in which they occur.
