BNP Paribas: Japan is expected to continue facing inflationary pressures.

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Jinse Finance reported that on June 26, economists at BNP Paribas stated that Japan is expected to continue facing inflationary pressures, and import prices are projected to remain above pre-Middle East crisis levels.
They said that although tensions in the Strait of Hormuz have eased, Japan's shift to more expensive U.S. crude oil, a significant increase in insurance costs, and the weak yen will continue to drive up import costs.
They added that, however, driven by the AI investment boom and a strong stock market, Japan's domestic demand is expected to remain robust.
They said: "With the improvement in the Middle East situation and the gradual fading of geopolitical uncertainties, Japan's total demand in the second half of the year may remain strong."
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