Japanese wholesale prices increased in September at the fastest annual rate in almost nine years, driven by rising prices for gasoline, metals and agricultural products. However, the gains are not see to increase the Japanese economy's weak inflation.
Wholesale prices advanced 3.0 percent last month on a yearly basis, marking the ninth consecutive month of gains, BOJ data showed. The increase also marks the fastest wholesale price growth since October 2008.
The increase in corporate goods price index (CGPI), was in line with the average estimate of economists and came after a 2.9 percent annual rise in August.
Economists anticipate consumer prices to increase gradually as majority of Japanese firms prefer to absorb the higher input costs, rather than passing on the expenses to consumers, making it for the Bank of Japan to hit its 2 percent inflation target. Since it launched its massive stimulus program in 2013, the BOJ had to delay the timing for hitting its price target six times.
Lending of Japanese banks in September rose 3.0 percent on-year, another published data showed, a decline from the 3.2 percent annual gain seen in August.
The material has been provided by InstaForex Company – www.instaforex.com