Investing.com– Japanese producer price index inflation grew more than expected in October, remaining close to annual highs as steep energy prices and spending associated with the AI trade underpinned business costs.
PPI grew 7.1% year-on-year in October, government data showed on Thursday. The print was higher than expectations of 6.5% and rose from the 6.8% rise in the prior month.
PPI grew 0.7% month-on-month, beating expectations of 0.3%.
A weak yen also factored into higher inflation by underpinned import costs.
Thursday’s print showed Japanese producer inflation remained high– a trend that is likely to underpin consumer inflation in the coming months.
High inflation furthers the case for more interest rate hikes by the Bank of Japan. The central bank had effectively declared victory against deflation last month, opening the door to more tightening after two rate hikes this year.
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