Amid tensions in the Middle East, consumer prices in Japan have risen again.

Affected by the rising energy costs due to the conflicts in the Middle East, consumer prices in Japan rose slightly faster in March. Government data released on Friday showed that consumer prices excluding fresh food rose 1.8% year-on-year, higher than February's 1.6%. This increase is in line with the predictions of economists surveyed by the media. The decline in energy prices slowed down in March, dropping by 5.7%, compared to February's 9.1%, reflecting the surge in oil prices due to the conflict in the Middle East. With increasing geopolitical uncertainties, it is widely expected that the Bank of Japan will maintain its policy rate at the upcoming meeting next week. However, due to the continuous rise in energy costs and the weakening of the yen, which may accelerate underlying inflation, the central bank may continue to seek further rate hikes. The bank's policy committee is scheduled to release its latest forecasts on growth and prices on Tuesday.