By Leika Kihara
TOKYO, Aug 13 (Reuters) – Japan’s annual wholesale inflation continued its surge in July, data showed on Thursday, highlighting broadening price pressures and reinforcing market expectations of an interest rate hike in September.
The producer price index rose 7.2% in July from a year earlier, after a revised 7.3% gain in June, Bank of Japan data showed. It compared with market forecasts for a 7.4% increase.
The data came in the wake of growing hawkish communication from the BOJ including a summary of opinions at its July meeting, where some policymakers called for speeding up the pace of rate hikes to combat inflation risks.
On a month-on-month basis, the index edged up 0.1% in July, after a revised 0.5% increase in June, the data showed.
The yen-based import price index rose 29.1% in July from a year earlier, after a revised 30.1% surge in June, a sign the currency’s weakness was pushing up import costs and broader inflation.
The BOJ kept policy steady last month, but warned for the first time that underlying inflation could exceed its target and said future discussions would focus on upside price risks, signalling the chance of a rate hike as soon as September.
(Reporting by Leika Kihara; Editing by Tom Hogue)
Comments