Japan’s annual wholesale inflation slowed to 2.5% in August, down from 3.0% in July, as the yen’s recovery lowered import costs. This easing inflation reduces immediate pressure on the Bank of Japan to raise interest rates, providing relief amid inflation concerns.
Yen Recovery Lowers Japan’s Wholesale Inflation, Reducing Pressure on Bank of Japan for Rate Hikes
According to data released on September 11, Japan's annual wholesale inflation declined in August due to the yen's recovery, which impacted import costs. This alleviated the central bank's obligation to address escalating price risks through near-term interest rate increases.
According to data from the Bank of Japan (BOJ), the corporate goods price index (CGPI) increased by 2.5% from the previous year in August, a decrease from the 3.0% increase observed in July. The CGPI gauges the prices that companies charge each other for their goods and services. It failed to meet the market's expectation of a 2.8% increase.
According to the data, despite a 10.8% increase in July, the yen-based import price index only increased by 2.6% in the year to August due to the steep rise in the Japanese currency during the month.
Wholesale prices decreased by 0.2% monthly in August. The import price index, which is based on the yen, decreased by 6.1% from the previous month.
BOJ’s Next Rate Hike Could Be Delayed as Slowing Wholesale Inflation Eases Pressure on Policy
The timing of the Bank of Japan's next interest rate hike may be influenced by the slowdown in wholesale inflation, which will impact the broader consumer price data in the future months.
The Bank of Japan (BOJ) discontinued negative interest rates in March and increased short-term borrowing costs to 0.25% in July, believing that Japan was making consistent progress toward the sustainable attainment of its 2% inflation target, per Reuters.
In July, the Bank of Japan (BOJ) increased rates due to the possibility of an inflation overshoot caused by rising import costs, as stated by Governor Kazuo Ueda.
He has also indicated that the BOJ is prepared to raise rates once more if consumer inflation remains on course to reach 2% in the coming years, as the board anticipates, and is accompanied by robust wage growth.


UK Politicians Call for Full Competition Review of Netflix’s Warner Bros Discovery Deal
Asian Currencies Trade Flat as Dollar Retreats After Fed Decision
Samsung Electronics Posts Record Q4 2025 Profit as AI Chip Demand Soars
Indonesian Stocks Slide After MSCI Flags Investability Risks and Downgrade Threat
UK Housing Market Gains Momentum in Early 2026 as Mortgage Rates Fall
South Korea Industry Minister Heads to Washington Amid U.S. Tariff Hike Concerns
NVIDIA, Microsoft, and Amazon Eye Massive OpenAI Investment Amid $100B Funding Push
Meta Stock Surges After Q4 2025 Earnings Beat and Strong Q1 2026 Revenue Outlook Despite Higher Capex
ASML’s EUV Monopoly Powers the Global AI Chip Boom
Dollar Struggles as Policy Uncertainty Weighs on Markets Despite Official Support
Microsoft AI Spending Surge Sparks Investor Jitters Despite Solid Azure Growth
Elon Musk Reportedly Eyes June 2026 SpaceX IPO Timed With Planetary Alignment and Birthday
U.S. Stock Index Futures Steady as Fed Decision and Big Tech Earnings Loom
BYD and Exxon Mobil Strengthen Hybrid Technology Partnership
Asian Currencies Slip as Dollar Rebounds Ahead of Fed Rate Decision
Anthropic Raises 2026 Revenue Outlook by 20% but Delays Path to Profitability
Asian Stock Markets Rise on AI Optimism Ahead of Fed Decision and U.S. Tech Earnings 



