Japan’s wholesale inflation slowdown points to easing price pressures — Reuters

According to Reuters, Japan’s annual wholesale inflation slowed again in June, marking the third straight month of decline. The figures support the central bank’s view that price pressures will continue to dissipate gradually.

Despite steadily rising food prices, some analysts expect Japan’s inflation to ease in the near future, with the negative impact of US tariffs seen as the key factor dampening the economic outlook.

Masato Koike of Sompo Institute Plus believes the slowing wholesale inflation will eventually exert downward pressure on consumer prices. He also notes that stalled trade negotiations with the US are increasing uncertainty, which could not only restrain price growth but also complicate the Bank of Japan's plans for monetary policy tightening.

The regulator expects food inflation to moderate this year. The bank has signaled it may raise interest rates, but only if the economy shows steady recovery on solid wage gain.