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Bank of Japan Governor Kazuo Ueda: The energy shocks that began around 2021 have been widespread and persistent, enough to help Japan escape its old deflationary cycle, but have not led to the inflationary spiral of the early 1970s.Bank of Japan Governor Kazuo Ueda: On the contrary, if these channels are not activated, large-scale shocks can still remain temporary.Bank of Japan Governor Kazuo Ueda: Temporary shocks could become persistent if they alter wages, expectations, and pricing behavior.On May 27, 2026, local time, Wang Yi, member of the Political Bureau of the CPC Central Committee and Foreign Minister, met with Bahraini Foreign Minister Zayani on the sidelines of the UN Security Council High-Level Meeting in New York. Wang Yi stated that as a good friend and partner of Bahrain and other Gulf countries, China sincerely hopes that peace and tranquility will be restored to the Middle East and the Gulf region as soon as possible. President Xi Jinping solemnly put forward four propositions on maintaining and promoting peace and stability in the Middle East, clarifying a responsible attitude and a fair stance. This war should not have happened, and there is no reason for it to continue. The urgent task is to promote a comprehensive and lasting ceasefire. The international community should increase its efforts to promote peace and work together to ease tensions and de-escalate the situation, especially opposing any attempts to escalate tensions. China supports Pakistan and other countries in continuing their active mediation efforts and is willing to closely coordinate with Bahrain and other Security Council members to ensure that the work of the Security Council moves in the right direction towards a political solution and to jointly strive for lasting peace and stability in the Middle East.Bank of Japan Governor Kazuo Ueda: The line between temporary inflation and persistent inflation is not mechanical.

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