This was the fastest annual factory-gate inflation pace since March 2023, primarily driven by rising energy and commodity import costs due to the conflict in the Middle East.
Producer prices in Japan rose by 6.3 per cent YoY in May compared to a 5.3-per cent rise in April, and crossing market forecasts of 5.5 per cent.
This was the fastest annual factory-gate inflation pace since March 2023, mainly driven by rising energy and commodity import costs due to the Iran war.
On a monthly basis, producer prices rose by 0.9 per cent, slowing from a revised 2.8 per cent rise in April.
On a monthly basis, producer prices rose by 0.9 per cent in the month, slowing from a revised 2.8 per cent rise in April, which had marked the largest monthly increase since April 2014, the Bank of Japan said.
It is expected that the central bank may raise interest rates at its upcoming policy meeting soon.
Consumer inflation has remained relatively contained due to government subsidies for fuel, utilities, and other household expenses despite the sharp rise in wholesale prices.
Fibre2Fashion News Desk (DS)
