On May 22, Kento Minami, an economist at Daiwa Securities, stated that the supply shock caused by tensions in the Middle East may begin to appear in Japan's consumer prices as early as June. The impact of geopolitical risks has not yet manifested in the April data, partly due to government energy subsidies. In April, consumer inflation, excluding volatile fresh food, rose by 1.4% year-on-year, down from a 1.8% increase in March. Minami noted that while Japan has made progress in seeking alternative oil sources, the inevitable cost increases due to longer transportation distances are expected to become a factor driving prices higher in the future. He added that concerns over supply constraints may persist due to differences in crude oil quality and logistical bottlenecks.