Japan - PPI for May 2.7% y/y (expected 2.1%)

An indicator for wholesale prices

PPI 2.7% y/y

• expected 2.1%, prior 2.1%, revised from 2.0%

And 0.6% m/m

• expected 0.2%, prior 0.2%, revised from 0.1%

If wholesale prices on the up translated into CPI the same the BOJ and admin more widely would be happier, but so far such transmission has been largely absent. Still, on the face this is a yen positive (it argues for less need, though not soon, for aggressive BOJ easing). Having said this, eyes are on the Singapore summit today, where hopes are up for a denuke deal, or at least progress, and thus the flows have been out yen on this.