Kazuo Ueda, Governor of the Bank of Japan (BOJ), noted on the 12th regarding the rising prices of food products, including fresh food, that he is 'deeply aware of the strong negative impact on the lives of the people.'
According to local media reports, including Kyodo News and NHK, Governor Ueda responded to a query from a member of the main opposition Constitutional Democratic Party in the House of Representatives, saying, 'The prices of frequently purchased items have risen significantly, with the overall consumer price index exceeding 2%.' He further expressed that 'the price increase is not necessarily temporary' and indicated his intention to monitor price trends in future monetary policy operations.
In response, NHK interpreted, 'The Bank of Japan has prioritized trends in the consumer price index excluding fresh food, which sees significant price fluctuations due to weather; however, as food prices continue to rise, it seems to have revealed thoughts on considering the impact of prices, including fresh food, on future interest rate increases.'
Last month, the consumer price index excluding fresh food in the 23 wards of central Tokyo rose by 2.5% compared to the same month last year. However, when including fresh food, it was found to have risen by 3.4%. Among food items, cabbage prices surged by 204.6%, and mandarin orange prices increased by 37.3%.
Meanwhile, Governor Ueda stated regarding the reduction of long-term government bond purchases, 'It is appropriate to reduce it in a predictable manner.' The Bank of Japan decided at its monetary policy meeting in July last year to cut long-term government bond purchases from the previous monthly 6 trillion yen (approximately 56.8 trillion won) to half that amount, 3 trillion yen (approximately 28.4 trillion won), by the first quarter of 2026.
Governor Ueda indicated regarding the possibility of further reductions in government bond purchases after April next year that 'I will evaluate the implementation status of the reduction plan in June this year and review the trends in the government bond market before presenting the results again.'
In response to a question about the impact of Donald Trump's economic policy on the Japanese economy, he answered, 'You cannot fully understand the impact unless you grasp it as a whole' and noted, 'It is difficult to make a judgment at the moment, but I am watching it with great interest.'