Japan's wholesale inflation spikes on energy shock, bolsters case for June rate hike

TOKYO - Japan's wholesale inflation accelerated in April at the fastest pace in three years as the Iran war boosted oil and chemical goods prices, data showed on Friday, bolstering the case for the central bank to raise interest rates as soon as June.

The data came after a Bank of Japan (BOJ) policymaker called for raising rates "at the earliest stage possible" as soaring fuel costs from the Middle East war stoked price pressures.

The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, rose 4.9% in April from a year earlier, BOJ data showed on Friday, hitting the fastest annual increase since May 2023.

The gauge blew past median market forecasts for a 3.0% gain, and accelerated sharply from a 2.9% increase in March.

"Wholesale inflation is likely to continue accelerating as a trend," said Masato Koike, senior economist at Sompo Institute Plus.

"If price rises are contained to oil-related goods, there is little need for the BOJ to respond. But if they broaden to a wide range of goods, the BOJ will likely have to raise rates," he said.

The yen-based import price index spiked 17.5% in April from a year earlier, the fastest rise since December 2022, a sign the currency's decline was adding to the energy shock in squeezing corporate margins through higher costs.

On a month-on-month basis, wholesale prices rose 2.3% in April after a 1.0% gain in March.

The data showed broadening price rises caused by the effective closure of the Strait of Hormuz, which is cutting off oil supplies for an economy heavily reliant on imports from the Middle East.

Petroleum and coal goods prices rose 5.3% in April from a year earlier, reflecting higher costs for crude oil and jet fuel, the data showed.

Chemical goods prices surged 9.2% last month, the fastest pace since September 2022, with the price of naphtha spiking 79.4%.

(Reporting by Leika Kihara; Editing by Jacqueline Wong and Shri Navaratnam)

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This story was originally published May 14, 2026 at 6:12 PM.