Daiwa Securities economist Kento Minami said the risk of prolonged inflation in Japan is increasing as crude oil rebounds and firms increasingly pass higher costs to consumers. He warned the recent sharp rise in crude could feed through to electricity prices after a roughly 3–8 month lag, potentially beginning in early 2027. Rising oil, logistics and labour costs are making cost pass-through more likely and could extend food inflation; food prices excluding fresh produce rose 2.7% YoY in August.