🚨BREAKING: Japan’s🇯🇵 Wholesale Inflation Slows
Japan’s annual wholesale inflation moderated for a second consecutive month in January, hitting 2.3%. While cooling fuel prices provided some relief, the weak yen remains a major thorn in the side of the economy, pushing import costs up by 0.5%.
The Core Impact:
Fuel vs. Metals: While fuel prices plummeted 12.9%, the cost of nonferrous metals skyrocketed by 33%, highlighting a volatile raw material market.
The BoJ Dilemma: The Bank of Japan (BoJ) is caught in a balancing act. Having already raised rates to a 30-year high of 0.75%, they are now watching the yen closely to decide if another hike is needed to curb "imported inflation.
Why It Matters:
Economists warn that while wholesale growth is slowing, the persistent weakness of the yen could delay the cooling of consumer prices, keeping pressure on households and businesses alike.
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