BoJ Governor Ueda says supply shocks loom large in everyone's mind and they are not new but have become more frequent

Says: Warns energy shocks may become more persistent. Central banks should not look at oil prices in isolation. Same oil price increase can have very different effects depending on wages, expectations, demand, and exchange rates. If inflation expectations are already high and wages are accelerating, the risk of second-round effects is large. If expectations are very low and wages are stagnant, even a large cost shock may not raise underlying inflation. The boundary between temporary and persistent inflation is not mechanical, and a temporary shock can become persistent if it changes wages, expectations, and price-setting behaviour, while a large shock can remain temporary if those channels do not activate.