Prime Minister Fumio Kishida’s advisory panel on growth strategies has raised concerns about the impact of the yen’s depreciation on the economy. The panel urged the government and the Bank of Japan to closely monitor the situation.
The weakening yen has led to increased costs for households, particularly in terms of imported goods like food and fuel. This has become a pressing issue for Kishida’s administration as it could potentially result in higher inflation rates.
The panel highlighted that the yen has depreciated by approximately 10% against the dollar since the beginning of the year. It is anticipated that this depreciation could contribute to inflation within the next six months to a year.
This development is a key consideration in Kishida’s “new capitalism” program, which aims to stimulate economic growth. The government is expected to take necessary measures to address the challenges posed by the weakening yen and ensure economic stability.