Japan November wholesale prices rise at fastest pace in nine years

Reuters

Published Dec 12, 2017 03:14

Japan November wholesale prices rise at fastest pace in nine years

By Leika Kihara and Sumio Ito

TOKYO (Reuters) - Japan's wholesale prices rose an annual 3.5 percent in November, the fastest rate in nine years, the Bank of Japan said, in a sign that rising global commodity costs were driving up corporate expenses.

Analysts say it is uncertain whether household spending is resilient enough to allow firms to pass the higher costs on to consumers, but Tuesday's data may offer some hope that consumer inflation could be headed towards the central bank's 2 percent target.

"Wholesale prices continue to move on a firm note" but only a handful of goods, such as steel products, are seeing prices rise on robust domestic demand, a BOJ official told a briefing.

The increase in the corporate goods price index (CGPI), which measures the price companies charge each other for goods and services, exceeded a median market forecast for a 3.3 percent rise and followed a 3.4 percent gain in October.

It was the fastest rate of increase since October 2008, when wholesale prices rose 4.5 percent from a year earlier.