Japan Inflation Cools, But Mideast War Adds Significant Risk -- Market Talk

Dow Jones03-24

0132 GMT - Japan's consumer inflation slowed more than expected in February, but the relief is unlikely to last, says Stefan Angrick at Moody's Analytics. Government support was a key factor in the print, cooling energy prices. Inflation slowed across most categories too, signaling that cost-push forces have eased, but the Middle East conflict poses significant risk. Surging oil and gas prices could drive a jump in energy from March, and renewed yen depreciation is an added concern. Uncertainty will keep the BOJ on hold for now, as will wage growth trends, Angrick says. Annual wage negotiations signaled steady gains but recent experience shows that these no longer translate into broad-based wage growth. Angrick still expects a rate hike in June or July, but sharp inflation or yen moves could pull that forward. (fabiana.negrinochoa@wsj.com)

 

(END) Dow Jones Newswires

March 23, 2026 21:33 ET (01:33 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

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