Tokyo: The central bank was under pressure to raise interest rates again as companies continued to pass on rising raw materials and labor costs for three straight months, according to data released on Wednesday ( Dec 11 ).
The Bank of Japan’s ( BOJ) two-day policy meeting that will end on December 19 is the time for the release of the November data, which comes before the current 0.25 per cent short-term interest rate increase.
According to BOJ data, the corporate goods price index ( CGPI), which measures the price companies charge each other for their goods and services, increased by 3.7 % last month from a year earlier, surpassing the median market forecast for a 3.4 % gain and registering the fastest annual increase since July.
The boost, which followed a 3.6 per cent get in October, was due to higher costs for food, non-ferrous aluminum and vinyl goods reflecting rising commodity and labour fees. The catalog, at 124.3, extended a record high for the second straight month.
” We’re seeing renewed inflationary pressure in private corporate products rates”, said Takeshi Minami, chief analyst at Norinchukin Research Institute.
” While use lacks speed, real wages are no longer falling significantly. Given building expansionary stress, there’s a good chance the BOJ may raise prices in December”, he said.