Japan’s wholesale inflation accelerated at its quickest pace in 11 months in July, data from the Bank of Japan showed, as a weakening yen drove up the costs of commodity imports that were already elevated.
The corporate goods price index (CGPI), which tracks the prices businesses charge one another for goods and services, rose 3 percent last month compared to a year earlier. This matched the median market forecast.
The index hit a record high of 123.1, marking the eighth straight month of increases. The rate of growth quickened from June’s 2.9 percent rise.
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The yen-based import price index climbed 10.8 percent in July on an annual basis, accelerating from a revised 10.6 percent increase the prior month. This underscores the ongoing struggle with a soft Japanese currency and persistently high raw materials prices.
Moreover, the latest inflation data will be closely monitored by the Bank of Japan, which raised interest rates on July 31 to levels unseen in 15 years. The central bank has signaled openness to further hike borrowing costs in an effort to rein in inflationary pressures.
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