BOJ Weighs Rate Hikes as Japanese Inflation Remains High

Japan's corporate goods prices continued to rise at an elevated pace in July, keeping high cost pressure on companies. According to data released by the Bank of Japan (BOJ) on Thursday, the measure of input prices for Japanese firms rose 7.2% in July from a year earlier.

This growth rate was slightly slower than the revised 7.3% seen in June, which was the highest since March 2023. On a monthly basis, prices climbed 0.1%, following an upward revision to 0.5% in the previous month's result.

The BOJ has been closely watching inflation levels and considering whether to proceed with additional interest rate hikes to contain it. Central bank officials continue to weigh their options, but no decision has been announced yet.