Economy Minister Minoru Kiuchi expects inflation to edge higher due to geopolitical risks in the Middle East.
Japan’s Economy Minister Minoru Kiuchi stated Wednesday that consumer prices are likely to rise gradually amid ongoing Middle East tensions. The remarks highlight concerns over supply chain disruptions and energy price volatility affecting inflation trends.
Recent inflation data in Japan has shown modest increases, though still below the Bank of Japan’s 2% target. Market expectations had centered on stable or slightly declining price pressures before geopolitical risks emerged as a new factor.
The USD/JPY pair traded down 0.12% at 159.01 following the comments, reflecting cautious sentiment toward yen movements amid shifting inflation expectations.