Kiuchi Downplays Inflation Risks as BOJ Warns of Price Surge

Japan's economy minister, Minoru Kiuchi, is attempting to downplay inflation concerns by pointing to June's relatively low consumer price index (CPI) reading of 1.7% year-on-year.

Kiuchi made these comments at a recent news conference, where he noted that higher energy and shipping costs linked to the Middle East conflict have yet to significantly impact what consumers pay for everyday items.

However, Kiuchi added a caveat, warning that these costs could start to filter into food and other essentials from summer through autumn.

This stance contrasts with the Bank of Japan's (BOJ) more hawkish tone on inflation, which has been warning that prices may exceed its 2% target. The BOJ raised interest rates in June to a 31-year high of 1%, further emphasizing its concerns about inflation.