Japan Inflation Stays Steady Amid Oil Price Volatility

Japan's core consumer inflation is expected to have held steady at 1.8% in August, according to a Reuters poll of 16 economists.

This forecast comes as the impact of higher oil prices from the Middle East conflict is offset by government subsidies, analysts say.

Ryohei Ikeda, an analyst at Mizuho Research Institute, noted that 'higher crude oil and naphtha prices are increasingly being passed on to consumer prices, especially for daily necessities, which will push inflation upward.'

However, Ikeda added that subsidies for electricity and gas bills will act as a factor pushing inflation downward.