BOJ comments on PPI - global recovery pushing prices up
PPI data from Japan is here: Japan PPI for May +0.7% m/m (expected 0.5%)
Commentary now from a BOJ official:
- 4.9% rise y/y is the largest rise since September of 2008
- rising commodity prices are reflecting the global economic recovery
- pushing up a broad range of wholesale prices in Japan
- companies are passing along rising costs, driven more by external factors than demand
On that "companies are passing along rising costs" ... well, this is not moving the needle on inflation if they are. Official CPI in Japan is showing negative readings in the latest release.