Economists: Consumer inflation rate in Japan is expected to rise to 2%

Taro Saito, an economist at the Nissho Foundation Research Institute, said that in the coming months, consumer inflation in Japan may rise above the central bank's target of 2%, with price increases expected to accelerate in a wide range of categories such as food and daily necessities. He said that despite the drop in oil prices following the peace agreement between the US and Iran, rising production costs may make consumer prices inevitably increase. Japanese central bank policymakers have already warned of inflation risks, stating that Japanese companies are becoming more aggressive in passing on the continuously rising costs to consumers.