Japan’s wholesale inflation quickens to fastest in nearly a year By Reuters

By Kentaro Sugiyama and Makiko Yamazaki

TOKYO (Reuters) -Japan’s wholesale inflation accelerated in July, with the pace of year-on-year growth the fastest in 11 months, data showed on Tuesday, as a weak yen pushed up commodity import bills that were already high.

The corporate goods price index (CGPI), which measures the price companies charge each other for goods and services, rose 3% in July from a year earlier, Bank of Japan data showed, matching a median market forecast.

The index, at 123.1, hit a record high for the eighth straight month. It accelerated from June’s 2.9% increase.

Inflation data will be scrutinised by the central bank, which raised interest rates on July 31 to levels unseen in 15 years and signalled its readiness to hike borrowing costs further.

The yen-based import price index climbed 10.8% in July from a year earlier, accelerating from a revised 10.6% rise in June, and reflecting the yen’s weakness and rising raw materials prices.