Minoru Kiuchi refrains from specifying a yen level but stresses monitoring currency effects on prices amid inflation concerns.
Japan’s Economy Minister Minoru Kiuchi declined to name a specific foreign exchange level, emphasizing close scrutiny of the yen’s impact on consumer prices. His remarks contrast with the Bank of Japan’s recent warnings about inflation overshooting, hinting at potential divergence in policy urgency between the government and central bank.
Kiuchi noted that June’s consumer price index rose 1.7% year-on-year, describing it as a moderate increase. While cost pass-through from global conflicts remains limited, he warned of potential gradual food price rises from summer through autumn, urging continued vigilance.
The minister’s call for appropriate BOJ policy to sustainably hit its 2% inflation target underscores ongoing coordination concerns. Markets may watch for shifts in tone that could signal government discomfort with the pace of monetary tightening.