Wholesale prices in Japan show a 9.1% surge

Wholesale prices in Japan rose 9.1% in October, being higher than a year ago but still below the previous month's peak. Price hikes continue to be steady, as the yen weakening contributes to rising import costs of raw materials for companies. 

Published data reveal that politicians are facing difficulties with protecting the economy from high import prices. This, in turn, is hurting corporate profits and has a negative impact on consumption in Japan. 

Wholesale selling rates hit a high in September, nearing 10.2%, while the growth in October appeared to be slower, still exceeding the market's average forecast of 8.8%. 

The Bank of Japan said at a briefing that October is considered the start of the second half in the country's fiscal year. Thus, major businesses used higher raw material costs as an excuse for hiking their prices on goods and services. 

Based on October statistics, it is clear that Japan's import price index, measured in local currency, rose another 42.6%. Although, the previous spike of 48.5% occurred last month. The yen's depreciation led to rising costs for imported goods, including fuel and food prices.

Higher costs for certain categories, i.e. fuel and raw materials, have pressured the country's economic recovery. As a result, a growing number of enterprises are placing increased costs on households due to low consumption rates.