Japan wholesale inflation accelerates, keeping alive BOJ rate-hike view
TLT•Japan’s wholesale prices rose 7.1% year over year in October, up from 6.8% in September and above the 6.5% market forecast. The increase kept alive expectations of a near-term Bank of Japan rate hike.
1. Prices rise faster
Japan’s corporate goods price index rose 7.1% in the year to October, accelerating from September’s 6.8% increase and exceeding the 6.5% median market forecast. The index measures prices companies charge each other for goods and services.
2. Import costs climb
The yen-based import price index increased 24.8% from a year earlier, as the currency’s weakness continued to push up raw material import costs. The data will be among the factors the Bank of Japan scrutinises at its next policy meeting on December 17 and 18.
