Kiuchi Offers Sanguine View on Inflation Despite BOJ Warning

Japan's Economy Minister Minoru Kiuchi expressed optimism about inflationary risks, despite the Bank of Japan warning that inflation could overshoot its 2% target.

In a news conference on Tuesday, Kiuchi noted that consumer prices have risen moderately, with an overall increase of 1.7% year-on-year in June.

He acknowledged that costs from the Middle East conflict have had limited pass-through to consumers, and warned that food and other goods may see price increases from summer through autumn.

Kiuchi emphasized the government's focus on cushioning households from rising inflation through fuel subsidies, and expressed hope that the BOJ continues to guide appropriate policy to achieve its 2% target.