(Bloomberg) -- Inflation in Japan’s corporate goods prices accelerated to the fastest pace in 16 months, an outcome that points to growing inflationary pressure in the economy and supports the central bank’s further normalization of policy.
The measure of input prices for Japanese firms rose 3.7% in November from a year earlier, the Bank of Japan reported Wednesday. The gain, led by agricultural products and utilities, was larger than all the estimates of 25 economists surveyed by Bloomberg.
The data show pressure continues to rise on companies to pass on costs to their customers, helping inflation to spread more broadly through the economy. Many economists expect the BOJ to raise its benchmark interest rate either on Dec. 19 or in January.
The BOJ is expected to examine all relevant economic data ahead of its decision next week, including its Tankan survey on business sentiment due Friday. Recent data including revised gross domestic product figures for the third quarter have largely shown the economy continuing to recover moderately.
The report showed a 1.2% drop in yen-denominated costs for imported materials and a 2.2% gain in yen terms for exported materials.
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