BOJ’s Kuroda defends remark on households’ acceptance of price hikes
13:02 JST, June 7, 2022
TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda on Tuesday defended his remark a day earlier that households were becoming more accepting of price hikes, saying it was made in the context of explaining the need for wages to rise more.
“We aren’t just aiming to raise prices. We instead want to create a positive cycle where prices rise in tandem with stronger wage growth and economic activity,” he told parliament.
“I made the comment in the context of explaining the importance of increasing wages,” Kuroda said, adding that the central bank will scrutinize various surveys to gauge household sentiment and perceptions on price moves.
Kuroda drew a flurry of criticism on social media for his comments on Monday as being out of touch with households suffering from rising living costs. Read full story
“It deviates somewhat from reality,” Japan’s Trade Minister Koichi Hagiuda was quoted by Kyodo news agency as telling reporters, when asked about Kuroda’s comments.
Kuroda’s comments come at a sensitive time for Prime Minister Fumio Kishida’s administration, which faces growing calls to deal with rising fuel and food costs ahead of an upper house election next month.
"BUSINESS" POPULAR ARTICLE
Japan resumes entry of foreign tourists
Processing power: Robot speeds production at Nagoya food manufacturer
Restaurant chains think outside box to blunt hit from soaring prices
Bread crusts, coffee beans transformed into craft beer by Japan brewing firm
Philippines to call for banana price rise in Japan
JN ACCESS RANKING
- Fukushima lab releases images of ‘highly likely’ UFOs
- Ajiichi Hojo / Modern flavors in a history-steeped building
- Japan-sponsored bridge opens in South Sudan, raising hopes for peace and development
- Defense minister to China: Concerns exist between Japan and China
- Japan scrambled aircraft 4.5 times more this May than last