Japanese assets, including the nation’s currency and stocks, are seen to be pressured by exceptional inflation amid surging energy costs, which has the potential to leave a strong impact, considering the country is an energy importer.
An increase in vaccinations might be fueling the economy, and its rising activity requires more Crude Oil, prompting a rise in demand. Oil’s price topped $80 on Monday for the first time since 2014. Will this rally endure, or will rising Oil production weigh on the price?
The Federal Reserve’s preferred inflation measure rose to its highest in roughly 30 years and Chair Jerome Powell sees inflation continuing into 2022. What assets may benefit from rising inflation? Historically, energy and consumer shares have risen in a high-inflation environment.