Japan's producer inflation rose at fastest pace since early 2023 in June on energy costs and a weaker yen

Japan's producer price index rose about 7% year on year in June 2026, the fastest pace since early 2023. The reading came in above the roughly 6.8% the market had expected and above the roughly 6.6% gain recorded in May. The Bank of Japan released the data on Friday, 10 July.

The main driver was higher energy costs stemming from the Strait of Hormuz tensions, alongside a weaker yen, a combination that analysts say strengthens the case for further Bank of Japan rate increases. Asian equity markets also slipped on Monday, 13 July, as oil prices stayed elevated.