Key insights
- Japanese wholesale inflation spiked to 4.9% in April, driven by rising import costs, particularly oil. This puts pressure on the BOJ to raise interest rates. While seemingly localized, unexpected hawkish moves by the BOJ could trigger risk-off sentiment globally, indirectly impacting US equities negatively.
By Leika Kihara
TOKYO, May 15 (Reuters) - Japan’s wholesale prices in April rose a faster-than-expected 4.9% from a year earlier, data showed on Friday, highlighting mounting inflationary pressures from the Iran war-induced spike in oil costs.
The data will likely add pressure on the Bank of Japan to raise interest rates as soon as its next policy meeting in June.
The rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, was much higher than the median market forecast for a 3.0% annual increase. It accelerated sharply from a revised 2.9% gain in March.
The yen-based import price index spiked 17.5% in April from a year earlier after a revised 8.0% gain in May, the data released by the BOJ showed.