Japan’s wholesale inflation rises to 7.1% in October
The annual rate accelerated from 6.8% in September, as the Bank of Japan prepares for its next policy meeting in December.
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The annual rate accelerated from 6.8% in September, as the Bank of Japan prepares for its next policy meeting in December.
Japan’s annual wholesale inflation accelerated to 7.1% in October from 6.8% in September, preliminary Bank of Japan figures released November 12 show. The increase was above the median market forecast of 6.5%.
The figures come from the corporate goods price index, which measures prices companies charge each other. On a monthly basis, prices rose 0.7% from September after declines in the previous two months.
Sayaka Yamazaki, head of the central bank’s price statistics division, said prices rose across a wide range of goods as companies passed on higher labor and raw-material costs. She also cited higher oil and chemical-goods prices linked to the Middle East conflict, Reuters said.
| Goods | Increase |
|---|---|
| Petroleum and coal goods | 15.9% (11.5% in September) |
| Chemical goods | 15.5% (13.4% in September) |
The central bank is scheduled to consider the data at its December 17–18 policy meeting. Many analysts in a Reuters poll expect it to raise its policy rate from 1.25% to 1.5%; that is an expectation, not a decision.
Masato Koike, a senior economist at Sompo Institute Plus, said his baseline forecast is a December increase, although the bank could hold rates if markets remain volatile.
The Bank of Japan reports slower annual price growth between companies and a 24.5% rise in yen-based import prices, ahead of its October policy meeting.
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The reading exceeds the central bank’s 2% target for the first time in nine months, ahead of next week’s policy meeting.
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