Renewed Oil-price Gains Could Prolong Japan's Inflation

Dow Jones15:13

0713 GMT - The resurgence of Middle East tensions and renewed increases in oil prices could keep Japan under inflationary pressure longer than expected, says Nomura Research Institute economist Takahide Kiuchi. The impact from oil-price hikes through spring is expected to drive price increases until around October, he says. If oil prices head higher again and remain elevated, prospects for price stabilization within this year will likely evaporate, he adds. "If financial markets react significantly to the worsening situation in Iran and rising crude oil prices, attention must be paid to the risk that the negative consequences for the Japanese economy will be further magnified." (megumi.fujikawa@wsj.com)

 

(END) Dow Jones Newswires

July 15, 2026 03:13 ET (07:13 GMT)

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