Japan's Wholesale Inflation Slows Sharply, Reflecting Waning Cost Pressures

Japan's wholesale inflation slowed below 1% for the first time in over two and a half years in October, indicating a decrease in cost push pressures that had been driving up prices. The slowdown in commodity-led inflation aligns with the Bank of Japan's projections, and attention now turns to whether wages and household spending will increase enough to generate demand-driven consumer price rises. The corporate goods price index (CGPI) increased 0.8% in October, matching market forecasts but cooling significantly from September's 2.2% rise. The slowdown was attributed to declines in prices for wood, chemical, and steel products, reflecting falling global commodity costs.