Japan’s Producer Price Gains Stay High as BOJ Mulls Rate Path

Japan’s corporate goods prices kept rising at an elevated pace in July, sustaining high input cost pressure for firms. The report reinforces expectations that the central bank is considering further interest rate hikes to contain inflation, which could pressure bond markets and tighten financial conditions.

Analysis

Japan’s corporate goods prices kept rising at an elevated pace in July, sustaining high input cost pressure for firms. The report reinforces expectations that the central bank is considering further interest rate hikes to contain inflation, which could pressure bond markets and tighten financial conditions.