Japan’s wholesale inflation remained at 0.9 percent in April as the yen declined, further increasing import costs. However, prices rose 0.3 percent compared to March 2024, according to the latest Bank of Japan prices data. This indicates another upcoming price increase which could push the central bank to increase interest rates again soon.
The report also reveals that export prices increased by 0.4 percent from the previous month and 1.3 percent year-on-year. Meanwhile, import prices fell 0.1 percent compared to March and 4.3 percent year-on-year.
However, the index measuring import prices in yen increased 6.4 percent annually in April and 1.4 percent compared to March. Meanwhile, the index measuring export prices in yen increased by 10.8 percent annually and 2 percent monthly, which reflects the impact of the yen’s devaluation on trade.
Read: Japan’s current account surplus soars to record high of $162.56 million in fiscal 2023
Earlier, central bank governor Kazuo Ueda explained that the Bank of Japan will increase interest rates only if inflation increases due to strong domestic demand and wage growth. However, he also warned that Japan’s inflation may exceed the target as the yen declines.
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