Japan's Inflation Could Approach 3% by Year-End Amid Middle East Tensions, Economist Says

According to economist Takeshi Minami from the Central Bank of Agriculture and Forestry Research Institute, Japan's inflation could approach 3% by year-end if Middle East tensions persist. Minami noted that sustained Strait of Hormuz disruptions could drive oil price increases, raising costs for oil-derived products like plastics, fertilizer shortages pushing up food production costs, and elevated logistics expenses.

Data released on May 22 showed Japan's April core consumer prices rose 1.4% year-over-year, the smallest increase since March 2022.