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Japan wholesale inflation cools, but BOJ hike case stays intact

Japan’s September wholesale prices rose 6.8% year over year, and yen-based import prices jumped nearly 25%, keeping BOJ rate-hike expectations sensitive to further hawkish signals.

Reported · Written up by our desk · Central Banks

Forexlive reports that Japan’s wholesale prices rose 6.8% year over year in September, below the 7.6% expected, as firms passed on fuel and chemical costs.

The outlet also said yen-based import prices jumped nearly 25%, leaving pressure high enough to keep a near-term Bank of Japan rate hike in view despite the softer factory-gate inflation reading.

Forexlive added that the weak yen is a key amplifier for inflation, since lower yen levels raise the yen cost of energy.

Traders, the outlet said, will watch whether companies continue passing higher costs through toward consumer prices, which is the step the BOJ monitors most closely.

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