Mizuho Securities: Rising tensions in the Middle East are pushing up energy and alternative procurement costs, and Japan’s import prices are expected to remain high

(1) Mizuho Securities economist Shota Amano stated that due to heightened tensions in the Middle East driving up energy prices and alternative procurement costs, Japan's import prices are expected to remain elevated. (2) He indicated that, as a result, the total value of imports may continue its upward trend. (3) He added: "If the situation in Iran stabilizes and supply constraints are eased, the increase in import volume (mainly Middle Eastern crude oil needed to replenish released oil reserves) is expected to further raise the total value of imports." (4) Government data released on Wednesday showed that imports rose by 28.0% year-on-year in August, following a 27.9% increase in July.