Japan's wholesale inflation accelerated in April at its fastest pace in three years, driven by surging oil and chemical prices from the Middle East conflict. The corporate goods price index (CGPI) rose 4.9% from a year earlier, well above market expectations of 3.0% and up sharply from 2.9% in March.
The yen-based import price index spiked 17.5%, the most since December 2022, as the currency's decline compounded the energy shock for Japanese businesses. Petroleum and coal goods rose 5.3%, while chemical goods surged 9.2% - the fastest since September 2022.
The data strengthens the case for the Bank of Japan to raise interest rates as soon as June, following a policymaker's call for tightening 'at the earliest stage possible.'