Japan posts strong wholesale prices on upbeat commodities
Japan saw an increase in its wholesale prices, hitting the sharpest level of expansion in over 13 years brought about by rising commodity costs. The reading underscored signs of global inflationary pressures, which put heavy pressures on struggling firms amid the coronavirus crisis.
The corporate goods price index (CGPI) recorded an annualized 4.9% increase in May, data from the Bank of Japan showed. The figure sat well above the 4.5% jump expected by analysts and much larger than the 3.8% expansion seen the month before.
Companies were struggling to transfer higher costs to households, and this was what prompted wholesale prices to surge. In turn, analysts were expecting longer maintenance of massive stimulus from the Bank of Japan.