24/04/2026
Japan’s inflation is rising—but this isn’t demand-led.
It’s imported inflation, driven by energy shocks and geopolitical disruptions around the Strait of Hormuz.
* CPI: 1.5% (↑ from 1.3%)
* Core CPI: 1.8% (above expectations)
* Oil: Sustaining above $100
* Fuel prices at record highs
The challenge?
The Bank of Japan may be forced to tighten policy into a supply-driven inflation cycle—a difficult trade-off for an already fragile recovery.
This isn’t just a Japan story.
For energy-importing economies like India, the pressure exists—just not fully visible yet.
Geopolitics is now a key driver of inflation.
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