Japan Economy Minister Kiuchi: Pass-through of rising costs has been limited so far

Japan Economy Minister Minoru Kiuchi said during the European trading session on Tuesday that the overall impact of the increase in the cost of goods has not yet been passed. Kiuchi added that bothe the government and the Bank of Japan (BoJ) are closely working to achieve sustainable 2% inflation target.

Remarks

June overall CPI shows price rises remain moderate year-on-year.

Must be vigilant to likelihood pass-through of costs on food could proceed from summer through autumn.

Govt shares with BoJ forecast that consumer inflation will accelerate in latter half of this year, slow thereafter

Hope BoJ conducts monetary policy appropriately to stably, sustainably achieve its 2% inflation target.

Hope BoJ closely communicates with govt in guiding policy.

Won't comment on specific FX level but watching closely impact of FX moves on economy, prices.