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Japan expects consumer prices to rise gradually amid Middle East conditions

Japan’s economy minister said the outlook is linked to the Middle East situation, and he framed prices as likely to move higher over time rather than sharply.

Reported · Written up by our desk · Central Banks

Japan’s economy minister Minoru Kiuchi said he expects Japan’s consumer prices to gradually rise, citing conditions tied to the Middle East situation, according to FXStreet.

Kiuchi’s comments came alongside a broader discussion of what typically drives the Japanese yen, which is heavily influenced by Bank of Japan policy, the yield differential between Japanese and US government bonds, and risk sentiment among traders, the outlet said.

FXStreet also noted that the BoJ has intervened in currency markets at times, generally to lower the yen’s value, and that the gradual unwinding of ultra-loose policy over recent years has supported the yen.

The outlet added that, because the yen is often treated as a safe-haven currency, market stress can strengthen it against riskier currencies.

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