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

Japan's wholesale inflation remained high in July, rising 7.2% year-over-year and reinforcing market expectations of an interest rate hike by the Bank of Japan (BOJ) in September.

The producer price index rose from a 7.3% spike in June to 7.2% in July, despite a slower-than-forecast increase.

Analysts say that renewed tensions in the Middle East are pushing up crude oil prices, which will drive up energy and other goods costs, leading to higher inflation.

BOJ policymakers have been warning of increasing inflation risks, including from the weak yen's impact on households through higher import costs.