BOJ Rate Hike Odds Rise on Japan's Persistent Wholesale Inflation

Japan's wholesale inflation remains elevated at 7.2% in July, slightly lower than expected but still near June's 7.3% spike.

The Bank of Japan's (BOJ) policy meeting summary showed some policymakers advocating for a faster pace of rate hikes to counter inflation risks.

Masato Koike, senior economist at Sompo Institute Plus, predicts that wholesale inflation will re-accelerate due to rising crude oil prices and further yen falls, which will push up import costs and broader inflation.