BANK OF JAPAN board member Ayano Sato said it is important to carefully assess whether recent inflation is temporary and cost-driven or more persistent and demand-driven.

ECB chief economist Lane said confidence has improved but has not yet returned to pre-war levels.

Tokyo-based Teikoku Databank says prices for 2,566 food and beverage items will rise in July, the largest jump since April. The firm attributes the increases to tighter oil-product supplies linked to Middle East tensions and says higher packaging (ink, food film, trays), energy and logistics costs have been passed through to retail prices. Teikoku Databank expects the upward price wave to persist into summer and beyond, with a weak yen and abnormal weather adding further upside pressure. Inflation is becoming a prominent political issue but has not yet dented Prime Minister TAKAICHI’s approval.