Kiuchi Says Consumer Prices Rise Moderately in Japan, Contrasting with BOJ Warning

Japan's Economy Minister Minoru Kiuchi has expressed optimism about inflationary risks, stating that consumer prices have only seen moderate rises so far. The minister attributed this to the limited pass-through of higher costs from the Middle East conflict. In contrast, the Bank of Japan (BOJ) has warned about the risks of inflation overshooting its 2% target.

Kiuchi pointed out that the overall consumer price index rose 1.7% year-on-year in June, indicating only moderate increases. However, he acknowledged that costs could be gradually passed onto food and other consumer goods from summer through autumn, necessitating vigilance.

The minister emphasized the government's focus on cushioning the impact of rising inflation on households through fuel subsidies. He also expressed support for the BOJ's efforts to achieve its 2% inflation target, stating that he hopes the central bank will continue to guide appropriate policy.