The official observed that price increases have broadened beyond rice to other food products since the commencement of the current fiscal year, indicating that “consumer prices are trending stronger then we and the market expect.” This trend suggests a significant departure from conventional pricing behavior among companies, especially within the food sector. While acknowledging the difficulty in directly measuring mid- to long-term inflation expectations, the official stressed the importance of closely observing evolving corporate conduct during this period of “major change” over the past few years.

In June, the Bank of Japan outlined a plan to reduce its government bond purchases for the fiscal year 2026. Vice President Uchida explained that the decision to moderate the pace of this reduction was driven by the “hard impact on the economy and prices of sudden interest rate fluctuations,” explicitly stating that “it’s not a consideration for the finances.”