Mitsubishi UFJ: Tensions in Iran could squeeze Japanese household budgets.

The economist at Mitsubishi UFJ Morgan Stanley Securities, Kazuhiro Oshima, said that the situation in Iran could bring further burdens to Japanese households, as cost-push inflation caused by rising oil prices would reduce real income. Oshima said, "In the current Japanese economy, although nominal wage growth is limited, price-pass through is progressing, in this situation, the situation may become quite severe, especially for the household sector." He added that this could lead to the implementation of more expansionary fiscal policies focusing on income redistribution.