--- title: "ATFX: Why are Japan and Korea's CPI data for March not showing significant increases?" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/40178784.md" description: "ATFX: Japan and South Korea are the countries most dependent on crude oil imports among Asian nations. Japan relies on imports for almost 100% of its crude oil, while South Korea's dependence on crude oil imports also exceeds 90%. Furthermore, both countries primarily import crude oil from the Middle East, requiring transportation through the Strait of Hormuz. Theoretically, when international oil prices surge continuously, the price levels in Japan and South Korea will suffer significant impacts. ▲ATFX Chart However, the reality is not so. South Korea's March CPI annual rate increased from 2% to 2.2%, a rise of only 0.2 percentage points..." datetime: "2026-04-24T13:45:41.000Z" locales: - [en](https://longbridge.com/en/topics/40178784.md) - [zh-CN](https://longbridge.com/zh-CN/topics/40178784.md) - [zh-HK](https://longbridge.com/zh-HK/topics/40178784.md) author: "[交易员说](https://longbridge.com/en/profiles/25527811.md)" --- # ATFX: Why are Japan and Korea's CPI data for March not showing significant increases? ATFX: Japan and South Korea are the countries with the highest dependence on crude oil imports among Asian nations. Japan imports almost 100% of its crude oil, while South Korea's dependence on crude oil imports exceeds 90%. Both countries primarily import their oil from the Middle East, and their supplies must pass through the Strait of Hormuz. Theoretically, when international oil prices surge continuously, the price levels in Japan and South Korea will suffer significant impacts. ▲ATFX Chart However, the reality is different. South Korea's March CPI year-on-year rate increased from 2% to 2.2%, a rise of only 0.2 percentage points, far lower than the nearly one percentage point increases seen in Europe and the US. Japan's CPI year-on-year rate also only increased from 1.3% to 1.5%, a rise of only 0.2 percentage points, similarly remaining at a low level. Looking at the inflation data, Japan and South Korea have hardly been noticeably affected by the sharp rise in international oil prices. In fact, if the impact of energy and fresh food prices is excluded, the core CPI of both countries is even in a declining state. This forces us to ponder why the inflation data of these two countries, with such high external dependence on crude oil, has not been significantly affected. We believe the answer lies in the Japanese and South Korean governments releasing their strategic petroleum reserves, creating a situation where international oil supply is tight but domestic oil supply remains relatively stable. Japan released 80 million barrels of oil on March 16, equivalent to 45 days of the country's total oil consumption. South Korea announced in March that it would release a total of 22.46 million barrels of strategic petroleum reserves over the next three months, also a massive scale. Under such resolute strategic petroleum reserve release policies, market confidence and supply-demand conditions have shown significant improvement. However, the total amount of strategic petroleum reserves is ultimately limited. With the worsening situation in the US-Iran conflict and the continuation of the dual blockade stalemate in the Strait of Hormuz, Japan and South Korea cannot rely on strategic petroleum reserves indefinitely to stabilize energy prices. The moment the national oil reserves are depleted will be the time when Japan and South Korea's CPI data skyrockets. ▲ATFX Chart Yesterday, the Nikkei 225 index hit a historical high of 60,013 points, as concerns about a potential macroeconomic recession due to the Strait of Hormuz blockade seem to have vanished. South Korea's Kospi index also hit a historical high of 6,557 points, with investment market sentiment reaching an extremely optimistic level. If the war between the US and Iran had ended, and Japanese and South Korean stocks had both reached new highs, it would still be logical. But currently, the situation between the US and Iran has merely shifted from mutual bombing to mutual blockade, with the hot war ending and a cold war beginning. This is not a result worth celebrating. ▲ATFX Chart In terms of exchange rates, one US dollar can be exchanged for 1,482 Korean Won, with this year's high point being 1,538 Won. It's evident that the current market price is at a historically high level. Moreover, from a long-term cycle perspective, the Korean Won shows a continuous depreciation trend against the US dollar. The situation with the Japanese Yen is even more pronounced. The amount of Japanese Yen one US dollar can buy has long been maintained near the historical high of 160. The depreciation trend of the Yen against the US dollar is widely known, and even if the Bank of Japan takes interest rate hike actions, it cannot change the long-term trend of the Yen's continuous depreciation. The fact that the inflation rates in Japan and South Korea have not rebounded due to high oil prices means that the central banks of Japan and South Korea do not have the same urgency to raise interest rates as the Federal Reserve and the European Central Bank. Given this difference in monetary policy inclination, the trend of the Yen and Won continuously depreciating against the US dollar is highly likely to continue. **ATFX Risk Warning, Disclaimer, Special Statement:** The market carries risks, and investment requires caution. The above content represents only the analyst's personal views and does not constitute any operational advice. Please do not treat this report as the sole reference. The analyst's views may change over time, and updated content will not be notified separately.