Justifying rising inflation, the Japanese Finance Minister Shunichi Suzuki said that they are driven by higher energy costs and the depreciation of the yen.
Additional quotes
Ready to splurge more fiscal support "without hesitation”.
Recent price rises driven mostly by increases in energy costs, though forex moves also has had some impact.
If inflation rises before improvement in job market, wage hikes kick in, that could affect consumption.
Will closely watch global economic developments including inflation, energy price moves.
Government ready to deploy necessary fiscal stimulus as economy still suffering from COVID-19 crisis.
It's true Japan’s fiscal situation becoming more severe.
Japan must maintain its resolve to get its fiscal house in order.
Market reaction
USD/JPY is flirting with daily highs of 115.25 on the back of improving risk appetite, as Russia-Ukraine geopolitical tensions cool off a bit on a likely meeting between US Secretary of State Antony Blinken and Russia’s Foreign Minister Sergey Lavrov next week. The spot is up 0.25% on the day.