Mizuho: Impact of Oil Prices on Japan's CPI Expected to Peak Next Year

Deep News09:50

Economists at Mizuho Securities stated that while the conflict in the Middle East has exerted significant upward pressure on oil prices, the majority of the impact on Japan's energy costs is projected to be offset by government subsidies. They noted that the effect on goods, primarily food, will materialize gradually, with price increases in these categories expected to peak between the spring and autumn of 2027, reflecting a lag of four to six quarters. Additionally, they mentioned that crude oil prices are likely to remain elevated in the near term, as ensuring the security of the Strait of Hormuz and achieving full normalization of transit are expected to take time.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment