Japan's producer price index jumped 4.9% in April, marking the fastest annual increase since May 2023.
The figure exceeded expectations for a 3.0% rise and accelerated from a 2.9% increase in March. On a monthly basis, producer prices grew 2.3%, surpassing forecasts of 0.7% and climbing from a 1% increase the previous month.
Higher oil and chemical prices drove the increase, with ongoing shipping disruptions in the Middle East linked to the Iran war contributing to the surge. A weaker yen also pushed import prices higher in April.
The producer price data suggests consumer inflation for April, scheduled for release in the coming days, may also show an increase.
The inflation figures could prompt the Bank of Japan to raise interest rates, with several policymakers already advocating for hikes in response to the energy-driven price pressures. The central bank is expected to act in June.
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