Japan Still ‘Half Way’ to Sustainable Inflation: PM Takaichi

2025-11-04 05:44 By Farida Husna 1 min. read

Japanese Prime Minister Sanae Takaichi told parliament on Tuesday that Japan has yet to achieve sustainable inflation backed by wage growth, signaling caution on further interest rate hikes.

While consumer inflation remains near 3% due to rising food costs, she said the country is still “half way” toward stable price growth supported by stronger wages.

Her remarks followed opposition leader Yoshihiko Noda’s warning that blocking rate increases could weaken the yen and raise import costs.

She also said the government will "strategically" use fiscal spending to boost household income, improve consumer sentiment, and strengthen the economy.

The BoJ ended a decade-long stimulus last year and raised short-term rates to 0.5% in January.

Separately, Finance Minister Satsuki Katayama said the government will continue to monitor foreign exchange movements as the yen hits fresh nine-month lows.



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