Japan Corporate Goods Prices Rise 7.1 Percent in October

Japan's corporate goods price index rose 7.1 percent year-over-year in October, surpassing the 6.5 percent median forecast and climbing from 6.8 percent in September. The increase was primarily driven by higher costs for utilities, chemicals, iron, steel, petroleum, and coal. A weakening yen further inflated import costs, which have risen nearly 25 percent compared to the previous year.

These inflationary pressures were partially offset by a 6.6 percent monthly decline in agricultural products, attributed to cheaper newly harvested rice. The surge in wholesale inflation strengthens expectations that the Bank of Japan will raise interest rates at its December meeting.

The central bank previously decided to hold the policy rate at 1.25 percent in late October. However, board member Hajime Takata had pushed for an immediate rate hike during that October session.