Japan's wholesale prices in September rose 6.8% year-on-year, import prices surged 24.5%, and expectations of interest rate hikes intensified.

(1) Data released on Tuesday showed that as of September, Japan's wholesale prices rose 6.8% year-on-year, as companies passed fuel and chemical costs onto consumers, highlighting continued intensifying inflationary pressure and reinforcing market expectations for a near-term interest rate hike.(2) This data will become one of the key factors the Bank of Japan will focus on at this month's policy meeting when reviewing quarterly economic growth and inflation forecasts.(3) The Corporate Goods Price Index (which measures prices of goods and services traded between companies) increased less than the market-expected 7.6%, compared to a 7.6% rise in August.(4) According to Bank of Japan data, the import price index in yen surged by 24.5% year-on-year in September, indicating that the weak yen continues to push up raw material import costs.