Japan's PPI Remains Elevated, BoJ September Rate Hike Expectations Rise

Japan's July PPI rose 7.2% year-on-year, maintaining a high level, with increases across petroleum, chemicals, and non-ferrous metals. Combined with the yen falling to a 40-year low, exacerbating imported inflation, "inflation-induced bankruptcies" in the first half of the year hit a record high for the period. With corporate cost pressures, wage increases, and yen depreciation resonating together, BoJ Governor Kazuo Ueda has previously signaled a September rate hike, potentially accelerating the pace of monetary policy normalization.