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Business

Japan Producer Prices Rise 7.2% in July as BOJ Weighs Rate Hikes

Japan's producer prices continued to climb at an elevated pace in July, keeping cost pressures high on companies as the central bank weighs further interest rate hikes. The Bank of Japan reported Thursday that the measure of input prices rose 7.2% from a year earlier, slightly slower than the revised 7.3% gain in June. The data shows that businesses still face significant cost pressure even as the pace of increase cools modestly. The BOJ has been considering whether to proceed with additional rate increases to contain inflation, and the persistent rise in producer prices is likely to factor into that decision. The figures highlight the challenge facing policymakers as they balance inflation risks against the need to support economic growth. Corporate goods prices remain a key indicator for the BOJ as it monitors whether cost increases are feeding through to consumer prices.

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