Okasan Securities economist Ko Nakayama said yen weakness and a rebound in crude
oil has increased cost pressures and left upside risks to Japan's inflation
outlook high. He said current price gains reflect multiple drivers — rising oil
and napatha prices, higher wages, a weaker yen and rising raw-material and
logistics costs. Government data on Friday showed a modest rebound in June
consumer inflation; BOJ policymakers have said oil-driven effects are likely to
feed into consumer prices around summer.
