Structural Strains Surface Across Health Care, Japan, and Energy Markets

Produced by Northern Trust’s global economics team, this weekly commentary examines how persistent supply constraints are reshaping inflation dynamics, fiscal risk, and energy security.

• U.S. healthcare inflation remains structurally entrenched as aging demographics, costly innovation, and policy retrenchment push more costs onto households and insurers.

• Japan’s bond market volatility signals a regime shift away from ultra-low rates, with rising yields posing global spillover risks despite no immediate fiscal crisis.

• Europe’s energy system is more resilient than in 2022, yet remains exposed to geopolitical tension and LNG market volatility.

How durable are these adjustments—and where do hidden risks still lurk? The full commentary unpacks the long-term implications across sectors and regions.