BOJ Data Fuels Rate Hike Expectations as Japan's Wholesale Inflation Rises

Japan's wholesale inflation continued to rise in July, according to data released by the Bank of Japan. The producer price index increased 7.2% year-over-year, following a revised 7.3% gain in June. This surge in prices is seen as evidence that interest rates may need to be hiked in September.

The BOJ's data also showed a slight decline in inflation from the previous month, which some analysts attribute to a resumption of strikes between the US and Iran.

Market forecasts had predicted an increase of 7.4%, but the actual figure came in slightly lower at 7.2%. The producer price index is used as a key indicator of underlying inflationary pressures in Japan's economy.