Data released on Tuesday revealed that Japan’s wholesale inflation picked up speed in July, marking the fastest year-on-year growth in 11 months. The surge was attributed to a weakened yen driving up import costs for commodities that were already on the rise.
The Bank of Japan reported that the Corporate Goods Price Index (CGPI), a gauge of prices companies charge for goods and services, climbed by 3% in July compared to the previous year, in line with market expectations. This pushed the index to a record high of 123.1 for the eighth consecutive month, accelerating from June’s 2.9% uptick.
The central bank, which implemented a rate hike on July 31 for the first time in 15 years, is closely monitoring inflation data. The yen-based import price index surged by 10.8% year-on-year in July, reflecting the yen’s devaluation and the continuous rise in raw material prices.
