According to The Kobeissi Letter, Japan's Consumer Price Index (CPI) inflation climbed to 3.6% in April 2025, with a 0.4% month-over-month increase and CPI excluding fresh food jumping 0.7%, marking the sharpest monthly gain since October 2023. The annual inflation rate accelerated from 3.2% to 3.5%, the fastest since January 2023 (source: The Kobeissi Letter, May 25, 2025). This pronounced inflation surge raises concerns of stagflation, which may impact the crypto market by increasing volatility in yen-denominated trading pairs and driving investor interest toward digital assets as alternative hedges.