Japan corporate goods inflation slows to 6.8% in September after BOJ hike

  • Japan's corporate goods price index rose 6.8% year-on-year in September, down from 7.6% in August.
  • The PPI gauge fell 0.3% month-on-month, while the preliminary index stood at 135.7 and missed the 7.6% forecast.
  • Persistent wholesale-price pressure kept possible BOJ rate increases in focus despite uncertainty over the timing.

Japan's preliminary corporate goods price index rose 6.8% in September from a year earlier, slowing from 7.6% in August and undershooting the 7.6% median market forecast. The PPI gauge fell 0.3% month-on-month for a second consecutive month, marking the sharpest annual slowdown since May 2025 and suggesting input-cost inflation may have peaked for now. The yen strengthened toward 158 per dollar after a two-session decline as investors returned from an extended holiday weekend. Persistent wholesale-price pressure continued to inform expectations for a possible Bank of Japan rate increase, although uncertainty remained over a move this month and markets anticipated a possible increase in December or January. Governor Kazuo Ueda said future decisions would depend on how wholesale prices pass through to consumer inflation and affect household spending.

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