Examining Impact Of Higher Oil Prices On Wholesale Prices

This report examines how rising crude oil prices are accelerating wholesale inflation in Japan faster than the Bank of Japan (BOJ) initially anticipated. The analyst suggests this trend supports the BOJ's current tightening bias and likelihood of future rate hikes.

Key Takeaways

• 1.The Bank of Japan is increasingly concerned that rising crude oil prices are feeding through to wholesale prices faster than expected, potentially impacting consumer inflation.
• 2.Despite the expectation of pass-through lags of up to 12 months, wholesale price increases for many goods are occurring more rapidly than the BOJ's baseline assumptions.

Table of Contents

• Examining impact of higher oil prices on wholesale prices, a key BOJ concern
• Important Disclosure Information
• Analyst Certification
• Disclaimer

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