Japan Producer Prices Jump 7.1% in June, Bolstering BOJ Rate-Hike Case
Updated
Updated · The Japan Times · Jul 10
Japan Producer Prices Jump 7.1% in June, Bolstering BOJ Rate-Hike Case
3 articles · Updated · The Japan Times · Jul 10
Summary
Japan’s corporate goods prices rose 7.1% from a year earlier in June — the fastest pace since early 2023 — after May’s gain was revised higher and monthly prices climbed 0.4%.
Oil, gasoline, electricity and plastic drove the increase, extending a run of strong readings that intensified after the Iran war pushed up energy costs.
The data adds to signs of persistent inflation pressure, with companies passing on higher costs and annual wage settlements topping 5% for a third straight year — the first such streak since 1989-91.
BOJ policymakers now have stronger support for further tightening, and traders still expect another rate hike by year-end, with bets growing it could come as soon as October.
The yen traded near ¥162.36 per dollar — close to a 40-year low — while Prime Minister Sanae Takaichi prepared an extra budget to extend household energy subsidies.