AI Data Insight
Japan's newly released Q2 (May) PPI recorded a month-over-month increase of 0.9%. Although lower than the previous value of 2.3%, it remains significantly higher than the market expectation of 0.5%. This rise is primarily driven by soaring energy costs triggered by Middle East geopolitics and amplified import pressures from the yen's depreciation. The strong price inflation data further reinforces market expectations of another near-term rate hike by the Bank of Japan.