Kiuchi: Japan's Inflation Pressures Remain Moderate

Japan's Economy Minister Kiuchi stated that the cost pass-through of rising costs has been limited so far, indicating moderate inflationary pressures.

Kiuchi noted that while input costs have risen, businesses have been cautious in passing these costs onto consumers. This suggests that the current inflation trend may not warrant a significant shift in monetary policy by the Bank of Japan.

The BOJ has maintained its ultra-loose monetary policy, aiming for stable 2% inflation, but the limited pass-through indicates that wage growth and consumer spending remain weak. This could influence the central bank's timeline for any policy normalization.