TOKYO, Oct. 13 (Xinhua) -- Wholesale prices in Japan climbed 9.7 percent in September from a year earlier owing to the yen's sharp decline inflating import prices for raw materials and energy, the Bank of Japan (BOJ) said in a report on Thursday.
The prices of goods traded between companies leaped by a record 9.8 percent in April. The year-on-year figure has since topped the 9 percent mark to date in 2022, as the yen's persistent weakness has added to inflationary pressure.
The BOJ's latest data showed that wholesale prices have increased year-on-year for a 19th straight month, which has been putting a strain on corporate profits, with rising numbers of Japanese businesses passing on these mounting costs to consumers.
In yen terms, import prices rocketed 48.0 percent from a year earlier, the BOJ said, as the yen plummeted against the U.S. dollar to its lowest level in more than 20 years.
This was amid a widening interest rate gap between the BOJ and its dovish monetary policy in stark contrast to the U.S. Federal Reserve with its aggressive rate hikes to combat inflation.
Export prices, meanwhile, rose 20.1 percent in the reporting period, the central bank said.
Prices for petroleum and coal products leaped 14.7 percent, the bank said, while steel prices soared 26.1 percent, and electricity, city gas and water bills jumped 38.8 percent, the BOJ said.
Japan's central bank believes the current surge in inflation is temporary and as a result has no plans to change its ultra loose monetary policy, in contrast to other major central banks who have raised their key rates to fight inflation.
Latest comments