Japan’s economy minister says pass-through of costs limited so far

TOKYO, Aug 4 : Japan’s Economy Minister Minoru Kiuchi said on Tuesday the pass-through of rising costs from the Middle East conflict on consumer goods prices remains limited so far, offering a sanguine view on inflationary risks.

“The overall consumer price index rose 1.7 per cent year-on-year in June, showing only moderate rises,” Kiuchi told a news conference, when asked about the Bank of Japan’s warning last week about rising risks of an inflation overshoot.

“We do need to be vigilant to the possibility that costs could be gradually passed onto food and other consumer goods from summer through autumn,” he added.