Oil price surge puts Sanae Takaichi’s honeymoon at risk
Reliance on energy imports exposes Japan to volatility and could delay interest rate rises
Reliance on energy imports exposes Japan to volatility and could delay interest rate rises

Latest outlook statement warns growth is likely to slow as Middle East conflict crimps profits and household incomes

Jump in oil prices will increase inflationary pressures but weigh on economic activity

Weakness to bolster Prime Minister Sanae Takaichi’s case for further stimulus to support struggling households

Reliance on imported fuel is strangling the world’s fifth-largest economy

Traders have also speculated that government may intervene in crude oil markets

Many expect Sanae Takaichi’s election to mean interest rates will stay low for longer. Don’t count on it