Reuters survey shows Japan's nationwide core CPI is expected to hold at 1.8% YoY
in August, unchanged from July and below the Bank of Japan's 2% target. The
survey said oil-price rises tied to the Middle East conflict are likely to be
offset by state aid. Mizuho Research Institute analyst Ryohei Ikeda said higher
crude and naphtha prices are increasingly feeding through to consumer goods,
especially daily necessities, which will push inflation up, while electricity
and gas subsidies will restrain the index. The Ministry of Internal Affairs will
publish August CPI on Sept. 18 (Fri), a few hours ahead of the Bank of Japan's
policy decision.
