Japan Wholesale Prices Rise 7.6% for Third Straight Month

Japan’s corporate goods prices rose 7.6% in August from a year earlier, staying above 7% for a third consecutive month but easing slightly from July’s revised 7.7% increase. Higher petroleum, coal, chemical and nonferrous-metal costs, along with a weak yen that raised import prices, contributed to persistent wholesale inflation; import prices rose 24.8% year over year. The data came as government energy subsidies were expected to offset some of the impact of higher oil prices on household inflation, with economists forecasting core consumer prices to remain below the Bank of Japan’s 2% target in August. Markets widely expect the BOJ to raise its policy rate to 1.25% at its meeting next week, after holding it at 1% in July.