Japan’s Economy Minister Says Rising Costs Have Yet to Materially Pass Through
Japan's Economy Minister Minoru Kiuch stated that the broader pass-through of higher input costs remains limited, while the government and the Bank of Japan continue to coordinate on achieving sustainable 2% inflation.
Speaking during the European session on Tuesday, Japan's Economy Minister Minoru Kiuch noted that the overall impact of rising goods costs has not yet been fully passed through to the wider economy. The remarks signal that cost-push pressures remain contained for now.
Kiuch added that both the government and the Bank of Japan are working closely together to ensure the country reaches its 2% inflation target on a sustainable basis. The comment reinforces the existing joint statement between the BoJ and the government on price stability.
The remarks come as markets assess the timing of any potential shift in the BoJ's ultra-loose monetary policy. Limited pass-through may support the case for maintaining accommodative settings, though the central bank remains focused on durable wage-driven price growth.
Source: FXStreet Forex News