BOJ governor says higher food prices in Japan may alter inflation expectations

Bank of Japan Governor Kazuo Ueda said on Wednesday the central bank will conduct monetary policy bearing in mind there are risks that food prices may continue to be high and affect people's inflation expectations.

"We're deeply aware that a rise of more than 2 percent in prices of fresh foods and other commonly purchased products are negatively impacting people's lives," Ueda told parliament.

"Rises in the prices of food, including fresh food, won't necessarily be temporary and there's the chance that this will impact people's mindsets and price expectations," he said.

Ueda's remarks followed the BOJ's decision last month to raise short-term interest rates to 0.5 percent, a level unseen in Japan for 17 years, underscoring policymakers' conviction the economy is on course to achieve wage-driven, durable price rises.