Japan Aug. wholesale prices up 7.6%, remain above 7% for 3rd month in row
Ideas
Wholesales prices, for the most part, globally, are up everywhere due to the mentioned ideas and they probably are not going to decrease anytime soon as maybe there is wholesale price bubble that is very hard to decrease and it might take month or even years if even then.
Unfortunately, most wholesale prices are going to be passed-on to the next in the supply chain including the final retail customer, and customers are already, globally, are stressed out from high prices and again its not going to get any better in the future, or so it seems.
The BOJ is very conservative and its not going to do anything that is going to hurt Japanese society or the economy and they might increase the key rate but it won't be a major increase but just a minimal increase to see how that is going to affect the economy.
Yes, many of these materials needed for AI products are going up even more and as usual whenever a commodity or product have some kind of increase in demand companies will begin to increase the price and most likely the price is not going to increase anytime soon.
Once again, prices are going up everywhere globally, and they are not going to decrease anytime soon which means consumers globally are going to see their disposable incomes decease even more.
And yes, the Middle East situation is not good and is making it worse and even without the Middle East situation global prices have been going up and will continue to go up due to the demand for AI related materials and products.
It should be understood there is an increase in volume and and increase in value of prices and the weak Japanese yen is causing havoc on import prices in Japan and as usual importers are passing-on prices to the next in the supply chain including the final retail customer.
Global oil prices are very volatile because energy and oil companies are always quick to increase prices even if there is not drama as they are quick to make sure their profit margins are always safe and in a zone that is preferable to their shareholders.
An increase of 1.25 by the BOJ is not a major increases as a 0.25 increase is a minimal increase and that is all the BOJ is going to do, even it they do that as a way to protect the economy while at the same time to help manage the economy and inflation in Japan.
The BOJ, maybe, has finally aligned itself with other central banks, as for a long time, the BOJ was not aligned as it was doing what it thought was in the best interest of Japan, despite what was happening in the global economy.
Have a nice day!
Article source: https://mainichi.jp/english/articles/20260911/p2g/00m/0bu/024000c
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