According to Jinshi, a measure of investors' expectations for inflation in Japan has tied a record high, and the weak yen has put upward pressure on the cost of living. Martin Whetton, head of market strategy at Westpac Bank in Sydney, said the rise in break-even inflation may be driven by soaring energy prices and a weak yen. Prashant Newnaha, senior Asia-Pacific interest rate strategist at TD Securities in Singapore, expects the market to push the break-even inflation rate higher before it feels confident about the timing of the next rate hike by the Bank of Japan. Wage growth from recent negotiations and the upcoming tax cuts in June may drive economic activity and consumption higher.