Kiuchi Sees Only Moderate Inflation Risks in Japan

Japan's Economy Minister Minoru Kiuchi expressed optimism about inflation risks in an interview on Tuesday, contrasting with the Bank of Japan's recent warning.

The BOJ warned last week that inflation might overshoot its 2% target. However, Kiuchi pointed out that consumer prices have only seen moderate rises so far, with a year-on-year increase of 1.7% in June.

Kiuchi emphasized the need for vigilance regarding potential cost increases from summer to autumn but noted that average real wages are expected to rise nearly 1% during the current fiscal year ending in March 2027.