Japan CPI Data Shows Middle East Tensions Spilling into Prices

Dow Jones
08/21

0225 GMT - Japan's consumer inflation data for July highlights some effects of higher energy costs triggered by the Middle East conflict, says Mizuho Securities economist Ryosuke Katagi. Electricity and city gas bills are creeping higher, while prices for many food items and household goods have accelerated, he says. "The results suggest that the impact of tensions in Iran is starting to gradually spill over into [Japan's] consumer prices," Katagi says. He expects inflation to pick up through the second quarter of 2027. Consumer prices, excluding fresh food, rose 1.8% in July from a year earlier, compared with June's 1.6% increase, Friday's data showed.

 

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