Daiwa Securities economist Yutaro Suzuki says Japanese producer prices are
likely to rise more than 5% YoY and that oil and petroleum-product prices could
remain elevated for a period. Bank of Japan data showed the June corporate goods
price index (CGPI) up 7.1% YoY. Suzuki warned renewed Middle East tensions pose
upside risk to oil, but said he expects oil to decline gradually over the long
run and for the CGPI to moderate modestly before year-end.