Institution: Escalating Middle East conflict adds upward pressure on Japanese inflation.

Hirofumi Suzuki of SMBC stated that the impact of the Middle East conflict on inflation in Japan may be limited for the time being. However, the head of the funds department research group said that based on a benchmark level of $60 per barrel before the conflict began, a 20% increase in crude oil prices would raise Japan's CPI by about 0.3 percentage points. Suzuki said, "This amplifies the risk of significantly increased overall upward price pressure." However, Suzuki added, "It could be delayed. Although speeding up inflation is a worrisome issue, the negative impact on economic activity may also be quite significant."