Global Market: Japan Wholesale Inflation Hits over Three-Year High, Reinforcing BOJ Rate Hike Expectations
Oil, electricity and plastic costs drove the increase, reinforcing expectations that the Bank of Japan will keep raising interest rates.
- On Friday, the Bank of Japan reported that the Producer Price Index rose 7.1 percent in June, marking the fastest pace since early 2023.
- Turmoil in the Middle East and the Iran conflict drove wholesale prices higher, as petroleum and coal products surged 22.8 percent and chemical products jumped 14.4 percent.
- Nonferrous metals spiked 39.2 percent due to damage at aluminum production bases, while plastic products rose 7.3 percent as the currency traded near 40-year lows.
- Prime Minister Sanae Takaichi compiled an extra budget to continue household energy subsidies, cushioning expenses stemming from the Middle East conflict.
- Traders expect the BOJ to continue raising interest rates this year, with market bets growing a hike could occur as soon as October.
15 Articles
15 Articles
Japan’s Wholesale Inflation Hits 3-Year High
Japan’s wholesale inflation accelerated in June at the fastest pace in more than three years. The producer price index increased 7.1 percent in June from a year earlier, data showed on Friday. This exceeded market forecasts for a 6.8 percent increase and marked the fastest year-on-year rise since March 2023. It accelerated from a revised 6.6 percent gain in May. Japan imports most of its energy, making it particularly sensitive to swings in glo…
The Economic Times
Times of IndiaGlobal Market: Japan wholesale inflation hits over three-year high, reinforcing BOJ rate hike expectations
Japan's wholesale inflation accelerated to its fastest pace in more than three years in June as companies passed on higher input costs driven by the Middle East conflict and a weaker yen. The stronger-than-expected reading has reinforced expectations that the Bank of Japan could raise interest rates again later this year.
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