• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

Japan’s rising wholesale inflation heightens uncertainty on BOJ’s rate hike timing

by November 13, 2024
written by November 13, 2024

By Leika Kihara

TOKYO (Reuters) -Japan’s wholesale inflation accelerated in October at the fastest annual pace in more than a year as renewed yen falls pushed up import costs for some goods, complicating the central bank’s decision on how soon to raise interest rates.

The corporate goods price index (CGPI), which measures the price that companies charge each other for goods and services, rose 3.4% in October from a year earlier, Bank of Japan data showed on Wednesday, above market forecasts for a 3.0% gain.

It followed a 3.1% increase in September and marked the fastest year-on-year increase since August 2023.

A spike in the price of rice, coupled with the increasing cost of nonferrous metals, food and oil, pushed up overall wholesale inflation, the data showed, a sign companies remained under pressure from rising raw material costs.

The yen-based import price index fell 2.2% year-on-year last month, less than the 2.5% drop in September, the data showed. On a month-on-month basis, the index rose 3.0% after falling 2.8% in September, a sign the dollar’s 4.3% rise against the yen during the month kept import costs high for many firms.

“Inflationary pressure remains sticky for wholesale goods prices,” said Takeshi Minami, chief economist at Norinchukin Research Institute.

“While consumption lacks momentum, wage hikes are proceeding so the chance of a December interest rate hike appears to be heightening,” he said.

The BOJ ended negative interest rates in March and raised short-term interest rates to 0.25% in July on the view Japan was making progress towards sustainably achieving its 2% inflation target.

BOJ Governor Kazuo Ueda has stressed the bank’s readiness to raise interest rates again if inflation becomes driven more by robust domestic demand and higher wages, rather than rising raw material costs.

Rising inflationary risks from a weak yen were cited by Ueda as one of the key factors that led to the BOJ’s decision to raise interest rates to 0.25% in July.

A Reuters poll conducted on Oct. 3-11 showed a very slim majority of economists projecting the BOJ to forgo raising rates again this year, although nearly 90% still expect rates to rise by end-March.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Seven & i considering launching management buyout, Nikkei and Bloomberg say
next post
Morning Bid: ‘Trump trades’ pause for breath before US CPI

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Trump implies government could cut contracts and subsidies to Musk’s companies

      June 7, 2025
    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (505)
    • Stock (6,426)

    Latest News

    • Trump implies government could cut contracts and subsidies to Musk’s companies
    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

    Popular News

    • Australia’s CBA fails to notify regulators over cash access fee, Australian reports
    • U.K. stocks lower at close of trade; Investing.com United Kingdom 100 down 0.32%

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy