BOJ Hike Odds Rise as Japan's Wholesale Inflation Stays Hot

Japan's annual wholesale inflation remained elevated in July at 7.2%, slower than market forecasts for a 7.4% increase but still near June's 7.3% spike, according to Bank of Japan data.

The producer price index edged up 0.1% on a month-on-month basis, following a revised 0.5% increase in June, the data showed.

Analysts say renewed tension in the Middle East is pushing up crude oil prices, which will push up the cost of energy and other goods, causing wholesale inflation to re-accelerate.

Masato Koike, senior economist at Sompo Institute Plus, predicted the BOJ would raise interest rates in September due to further yen falls lifting import prices.