TOKYO, June 7 Reuters Japanese Prime Minister Fumio Kishida39;s advisory panel tasked with growth strategies called on Friday for the government and the Bank of Japan BOJ to be vigilant to the impact of the yen39;s depreciation.

The call reflects the government39;s growing concerns about a weak yen, a headache for Kishida39;s administration as the currency39;s decline pushes up households39; 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 Kishida39;s new capitalism programme of driving growth.

The government and the Bank of Japan should work closely to achieve the 2 inflation target in a sustainable and stable manner through flexible policy management, the draft said.

The impact of the yen39;s depreciation on prices should be closely monitored as such impact will eventually be reflected, it said.

The reference to the weak yen39;s impact also figured in a draft of this year39;s longterm economic policy roadmap, keeping the BOJ under pressure to raise interest rates or slow its huge bond buying, moves some analysts believe could slow the currency39;s declines.

BOJ Governor Kazuo Ueda has ruled out using monetary policy to directly influence exchangerate moves, but signalled the chance of raising rates if the weak yen pushes…