BOJ warns of summer price hikes amid rising energy costs
The Bank of Japan reports that many firms are passing on rising energy and labor costs. Wholesale inflation reached a three-year high of 4.9 percent in April.
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Bank of Japan warned Japan faces broad price hikes this summer as firms pass on energy costs. Wholesale inflation reached a three-year high of 4.9% in April following the Middle East conflict. Faster price adjustments strengthen the case for a near-term interest rate hike by Japanese policymakers.
Service-sector firms are abandoning long-held low-price strategies to offset rising raw material and labor expenses. The Bank of Japan report, based on a January-to-April survey, indicates food makers and hot spring facilities are accelerating price increases.
