Japan's wholesale inflation rate drops to 2.3% in January, slowing for the second consecutive month

　　Data released on Thursday showed that Japan's wholesale inflation rate slowed for the second consecutive month in January, but the cost of imports priced in yen rose, indicating that a weakening yen will continue to exert upward pressure on prices.

　　The Corporate Goods Price Index (CGPI) is used to measure the prices of goods and services traded between companies. The index rose 2.3% year-on-year in January, in line with market expectations and slightly slower than December's 2.4% increase.

　　According to data released by the Bank of Japan, the index measuring import prices in yen terms rose 0.5% year-on-year, higher than the revised 0.2% increase in December.

　　These data will be among the factors considered by the Bank of Japan when assessing whether underlying inflation is likely to sustainably reach the 2% target.

　　In December, the Bank of Japan raised its policy interest rate from 0.5% to 0.75%, the highest level in 30 years, marking another key step toward ending decades of massive monetary support and ultra-low borrowing costs.

Editor: Yu Jian SF069