Inflation a main concern for new economic ministers

TOKYO, Aug. 2 Kyodo - Economic ministers in Prime Minister Yasuo Fukuda's new Cabinet expressed serious concerns Friday over negative impact on the Japanese economy from rising energy and commodity prices.

Economic and Fiscal Policy Minister Kaoru Yosano said in a press conference that inflationary pressures with gasoline and food prices being driven up are his ''chief concern.'' The government must press for policies that could help people feel ''warmth''in their lives, Yosano said.

Finance Minister Bunmei Ibuki said problems the Japanese economy now faces stem mainly from ''factors from outside'' as Japan greatly depends on exports foroil and other natural resources.

''The environment is significantly tough,'' Ibuki said.

With the country facing a shrinking and aging population, raising laborproductivity is among the key solutions to achieve strong growth, he added.

On the global financial turmoil, Yosano said a series of problems following the U.S. subprime mortgage crisis have made the world economy ''unstable.'' The government will closely watch efforts by central banks in major economies torecover stability in credit markets, he said.

Financial Services Minister Toshimitsu Motegi told reporters that Japanese financial markets have been relatively stable compared with those in Europe and the United States but that ''there is tension on the global level, so we must stay alert.'' ==Kyodo