JAPAN'S FIRM WHOLESALE INFLATION KEEPS ALIVE NEAR-TERM RATE HIKE RISKS
Japan's wholesale inflation held steady at 0.9% in April as the yen's declines pushed up import costs, suggesting another wave of price hikes could prod the central bank to raise interest rates again in the near term. Analysts expect wholesale inflation to accelerate in coming months, as the effect of government subsidies to curb utility bills fade and add to price pressures from rising import costs.
The year-on-year rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, compared with the median market forecast for a 0.8% gain and followed a 0.9% increase in March. An index measuring the yen-based import goods prices jumped 6.4% in April from a year earlier after a 1.4% increase in March, Bank of Japan (BOJ) data showed on Tuesday, reflecting the currency's recent sharp declines.
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