Japan's wholesale prices rose in June, but economists see little impact on the central bank's monetary policy.
Bank of Japan (BoJ) figures today showed that the corporate goods price index (CGPI) rose 1.4 per cent in June from the same month a year earlier, up for the 16th consecutive month on a year-on-year basis, but below forecasts of a 1.6 per cent rise.
Economists said rises in the CGPI have had a limited impact on consumer prices - a key benchmark for the central bank's monetary policy, which they expect will remain unchanged after its two-day meeting today and tomorrow.
"The figures do not change our view on CPI, which we forecast will start rising on year-on-year terms in the October-December quarter. The CPI is expected to rise from higher service costs, reflecting a recent rise in wages," said Yoshimasa Maruyama, an economist at BNP Paribas.
The BoJ's nine-member board may adopt a brighter view on the economy after a strong quarterly business survey, but it is widely expected to keep its ultra-loose policy unchanged.
Even though wholesale prices are rising many firms are reluctant to pass higher costs on to consumers, keeping prices of their products low to stay competitive. Economists expect it will take at least several more months for consumer prices to start rising as a trend.