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Japan's wholesale inflation rate reaches 4%, and expectations of a rate hike by the Bank of Japan continue
Japan's wholesale inflation in February matched expectations, slowing from January. Data showed ongoing inflationary pressures and sustained expectations for a central bank rate hike.
Japan's corporate goods price index (CGPI) rose 4.0 percent year-on-year in February, according to data released on Wednesday, reflecting pressure from rising raw material costs, which is likely to maintain market expectations for a near-term interest rate hike by the Bank of Japan (BOJ).
The index, which measures price changes for goods and services among businesses, rose in line with market expectations in February but slowed from a 4.2% annual increase in January.
Meanwhile, Bank of Japan data showed import prices in yen terms fell 0.7% in February from a year earlier, after rising 2.3% in January.
The BOJ ended a decade of massive monetary stimulus last year and raised its short-term interest rate to 0.5% from 0.25% in January as consumer inflation has exceeded its 2% target for nearly three years.
The Bank of Japan said it would be ready to raise interest rates further if the economy continues to recover modestly.
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