Japan wholesale inflation slows in January while weak yen pushes import costs higher
Japan wholesale inflation slowed to 2.3 percent in January. Rising import costs suggest that a weak yen continues to put upward pressure on domestic prices.
Insights:
Wholesale inflation in JP 
JP showed signs of cooling in January as the corporate goods price index (CGPI) rose 2.3 percent year-on-year. This figure represents a slight deceleration from the 2.4 percent gain recorded in December, marking the second consecutive monthly slowdown for the index. Simultaneously, yen-based import prices increased by 0.5 percent year-on-year, reflecting the ongoing impact of a weak currency on the cost of goods entering the country.
JP showed signs of cooling in January as the corporate goods price index (CGPI) rose 2.3 percent year-on-year. This figure represents a slight deceleration from the 2.4 percent gain recorded in December, marking the second consecutive monthly slowdown for the index. Simultaneously, yen-based import prices increased by 0.5 percent year-on-year, reflecting the ongoing impact of a weak currency on the cost of goods entering the country.These latest figures are being closely monitored by the Bank of Japan as it evaluates whether underlying inflation is durably reaching its 2 percent target. The data arrives at a critical juncture for the central bank, following its decision in December to raise the policy interest rate to 0.75 percent. Policymakers will scrutinize the combination of slowing wholesale price growth and rising import costs when making future monetary policy decisions.
