Japan’s wholesale inflation slows sharply in sign of waning cost pressures

Japan’s wholesale inflation slows sharply in sign of waning cost pressures

Japanese wholesale inflation slowed below 1% for the first time in over 2-1/2 years, indicating a decline in cost push pressures that had been driving up prices for various goods. The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, increased by 0.8% in October compared to the previous year. This figure aligns with the market forecast for a 0.9% gain but represents a significant cooling from the 2.2% rise in September. The data reveals that this is the 10th consecutive month of slowing wholesale inflation, with the year-on-year growth rate falling below 1% for the first time since February 2021. The decline in prices for wood, chemical, and steel products contributed to this slowdown, highlighting the impact of decreasing global commodity costs. The surge in wholesale inflation has prompted many Japanese companies to pass on higher costs to households, leading the Bank of Japan to revise its inflation forecasts in October. However, the Bank of Japan emphasizes that cost-push inflation must be replaced by price increases driven by robust domestic demand and accompanied by wage growth in order for it to consider ending ultra-low interest rates.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

Have a tip we should know? tips@rhd.news

Most Read

  1. News
    Pandora Papers Financial Leak Shows Us the Secrets of the World’s Rich and Powerful
    2 years ago
  2. Health
    US Supreme Court Rejects J & J TALC Cancer Case Appeal
    3 years ago
  3. Lifestyle
    9 Habits that Drain your Daily Focus and How to Avoid Them
    3 years ago
    Women’s Demand for Shapewear – the big Trends
    3 years ago
    Valentino Launches its Cosmetics Line
    3 years ago
  6. Health
    US Promises to Share 60 million Doses of AstraZeneca Vaccines
    3 years ago
  7. Health
    UK Offers Aid Amid Surging COVID-19 Cases in India
    3 years ago
  8. Sports
    Thousands of fans welcome Charlton funeral cortege at Old Trafford
    3 weeks ago
  9. News
    Brit left fighting for life after train derails in Argentinia
    3 weeks ago
    Dubai faces down airline rivals with $50 bln jet orders
    3 weeks ago
  11. Sunak
    UK’s Sunak brings back Cameron, sacks Braverman
    3 weeks ago
  12. Sports
    Man United’s Hojlund, Eriksen withdrawn from Denmark team duty
    3 weeks ago
  13. Health
    Autumn Sneezing Syndrome is on the rise… here’s what you can do
    3 weeks ago
  14. Canada
    Canada beat Italy to win Billie Jean King Cup for first time
    3 weeks ago

Follow @rushhourdaily: