Japan’s wholesale inflation remained at 3.8% in December 2024, driven primarily by high food prices, particularly a 31.8% increase in agricultural goods costs.
The steady inflation rate, which matched market expectations, was also influenced by rising fuel costs due to the removal of government subsidies. Additionally, the yen’s weakness led to higher import prices, contributing to overall cost pressures for companies.
The Bank of Japan is considering raising interest rates at their January 23-24 meeting, as indicated by Governor Kazuo Ueda.
The latest chatter is of a hike too: