On May 19, 2026, Taiwan media Liberty Times, quoting a report from France's AFP news agency, reported that while Japan's economic growth from January to March this year exceeded expectations, concerns about inflation due to the future worsening of the Middle East situation exist.

The article introduced that Japan's gross domestic product (GDP) grew 0.5% from January to March this year, exceeding market forecasts of 0.4%. It conveyed that personal consumption and corporate investment drove the growth.

On the other hand, it pointed out that commodity prices, such as energy and rice, are skyrocketing due to the conflict in the Middle East, on which Japan relies for about 95% of its oil imports.

Furthermore, Marcel Thieliant of the economic research firm Capital Economics stated that Japan could face the full impact of surging energy prices in the coming months and touched on his prediction that economic growth would stagnate in the April-June and July-September quarters.

The article introduced that Prime Minister Sanae Takaichi is planning to formulate a supplementary budget to maintain economic growth due to concerns about inflation, and Chief Cabinet Secretary Minoru Kihara also stated that it is important to closely monitor price trends and their impact on the economy due to the Middle East situation.

In addition, the Bank of Japan in April raised its outlook for the consumer price index (CPI) excluding fresh food for the current fiscal year from 1.9% to 2.8% and for the next fiscal year from 2.0% to 2.3% respectively, and reported that the possibility of the Bank of Japan embarking on an interest rate hike as early as June has emerged. (Edited and translated by Kawajiri)