Japan's wholesale prices rose in April at their fastest annual pace in six and a half years, data showed on Monday, a sign that rising energy and commodities costs were pinching corporate margins.
With the COVID-19 pandemic weighing on domestic consumption, there is uncertainty about whether companies will pass on higher costs to households and help the central bank achieve its elusive 2% inflation target, analysts say.
"The rise is driven mostly by solid global demand that is pushing up commodities prices," said Shigeru Shimizu, head of the BOJ's division in charge of price statistics, adding that prices of goods sensitive to domestic demand were rising only modestly so far.