Food price rise.

Rice is so expensive that our rice-loving family is in trouble.

vegetables have also risen in price, and this is Kometsukko, who now thinks barbecues are a luxury, hello.

(Barbecue when cheap)

Well then, the Bank of Japan has just raised interest rates, hasn't it.

What do they think about food price increases?

Below, quoted from Yahoo News↓

(Bloomberg): On the 12th, BOJ Governor Kazuo Ueda indicated that price increases for food, including fresh produce, are not temporary and may affect people's mindset and inflation expectations, at a House of Representatives Financial Affairs Committee meeting.

Governor Ueda said that the rise in prices of goods with high purchase frequency, including fresh foods, is causing the overall consumer price index to exceed 2% year over year, and stated, “I deeply recognize that this is having a strong negative impact on citizens’ lives.”

He also mentioned the possibility that such food price rises may not be merely temporary. “There is a non-zero risk that they influence people’s mindset and expected inflation rates. We will incorporate such perspectives and conduct policy management appropriately.”

The BOJ raised the policy interest rate in January to about 0.5%, the first time in 17 years, and stated that if the economy and prices proceed as projected, it will adjust the degree of monetary easing through further rate hikes. Market attention is focused on the timing and pace of the next rate increase. While the BOJ presents a core index excluding the highly volatile fresh foods in its price outlook, the governor indicated that he will monitor the trend of price increases including fresh foods.

The Ministry of Internal Affairs and Communications announced last month that in December last year, the nationwide CPI rose 3.6% year over year, the highest since January 2023. Fresh foods rose 17.3%. The core CPI excluding fresh foods rose 3.0%, marking the first time in four months that it surpassed 3%. Food excluding fresh foods rose 4.4%.

When asked whether another option is to lower the rate hike size to increase flexibility and mobility, he explained that the appropriate width depends on the current economic, price, and financial conditions. Regarding the 0.25 percentage point hike in January, he stated, “So far, such a rate hike width has been appropriate for policy decisions.”

Regarding the Trump administration in the United States, he said it would have a significant impact not only on the U.S. economy but also on the world economy and markets, and that he is “watching with great interest.” He added, “As U.S. policy becomes clearer, we will firmly incorporate it into our outlook.”

Bloomberg’s economist survey after the January rate hike showed that the most likely timing for raising the policy rate to about 0.75% is July, at 56%.

...that is what I hear.

For now, I hope they do something about the price of rice (crying)…

https://www.gogojungle.co.jp/tools/indicators/55316

https://www.gogojungle.co.jp/tools/indicators/48521?via=users