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2026-09-18 10:24:09
【Daiwa Securities: Rising Oil Prices and Cost Pass-Through Increase Risk of Prolonged Inflation in Japan, Food Price Increases May Be Prolonged】 (1) Daiwa Securities economist Kento Minami said that given the renewed rise in oil prices and companies' continued cost pass-through, the risk of prolonged inflationary pressures in Japan is increasing. (2) He said that the recent surge in crude oil prices may begin to be transmitted to electricity bills in early 2027, with a lag of about three to eight months. (3) Minami pointed out: "Oil prices, logistics costs, and labor costs are all rising, which maintains an environment in which companies can easily pass on cost increases to retail prices." (4) He added that rising costs may prolong the upward trend in food prices as companies pass on higher expenses to consumers. (5) Data released on Friday showed that food prices, excluding fresh food, rose 2.7% year-on-year in August.
