Prime Minister Fumio Kishida's advisory panel tasked with growth strategies called on Friday for the government and the Bank of Japan to be vigilant over the impact of the yen's depreciation.
The call reflects the government's growing concerns about a weak yen, a headache for Kishida's administration as the currency's decline pushes up households' cost of living by inflating the price of imported food and fuel.
"The yen has weakened by about 10% to the dollar since the beginning of this year, and the impact of this depreciation may be reflected in inflation over the next six months to a year," the panel said in its draft action plan on Kishida's "new capitalism" program aimed at driving growth.