Japan's sharp wholesale price rise heaps pressure on BOJ's ultra-easy policy

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Japan's sharp wholesale price rise heaps pressure on BOJ's ultra-easy policy
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TOKYO :Japan's annual wholesale prices rose at a faster-than-expected pace in December, data showed on Monday, adding to recent growing signs of inflationary pressure that could force the central bank to raise interest rates soon.The 10.2 per cent year-on-year rise in the corporate goods price index (CGPI), w

TOKYO :Japan's annual wholesale prices rose at a faster-than-expected pace in December, data showed on Monday, adding to recent growing signs of inflationary pressure that could force the central bank to raise interest rates soon.

While global commodity prices slipped, companies continued to pass on past increases in raw material costs for goods such as auto parts and electricity equipment, said a BOJ official briefing reporters on the data. "While inflationary pressure from imports is easing, firms are still passing on rising input costs at home," said Takeshi Minami, chief economist at Norinchukin Research Institute.

For 2022, wholesale prices rose 9.7 per cent on average from the previous year, hitting a record high since comparable data became available in 1981. It was much higher than a 4.6 per cent gain in 2021.

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