Japan's upcoming public and private investment plans require careful attention to the risks of intensifying inflationary pressures and destabilizing the Japanese economy, says Mitsubishi UFJ Morgan Stanley Securities strategist Naomi Muguruma. As the Bank of Japan's latest tankan survey signals that companies are no longer hesitating to pass on rising costs, corporate inflation expectations are marching higher, driven by an acute labor shortage, high crude oil prices and a weak yen, she says. Such a shift suggests that any aggressive investment push could overheat the economy before productive capacity catches up. (megumi.fujikawa@wsj.com)