Dec wholesale prices flat yearonyear vs forecast 0.3
Slowdown driven partly by govt gasoline, utility subsidies
About 80 of items in index saw prices rise
BOJ seen cutting price forecast at next week39;s meeting sources

TOKYO, Jan 16 Reuters Japan39;s wholesale inflation was flat in December from a year earlier, slowing for the 12th consecutive month, underscoring the central bank39;s view that costpush pressure from rising raw material prices will steadily dissipate.

The data indicate that rises in consumer inflation will moderate in coming months, and take pressure off the Bank of Japan BOJ to phase out its massive monetary stimulus soon.

The reading for the corporate goods price index CGPI, which measures the prices companies charge each other for their goods and services, compared with a median market forecast for a 0.3 fall and followed a 0.3 increase in November.

The result was the lowest since a 0.9 drop in February 2021, showed BOJ data released on Tuesday.

The slowdown in wholesale prices was due partly to government subsidies to curb petrol and utility bills, which combined shaved 0.9 point off wholesale inflation, a BOJ official told a briefing.

Prices of steel, chemical and wood products also fell in December, a sign that weakening global demand for some commodities was pushing down raw material costs for companies.

But about 80 of items in the index saw prices rise from yearbefore levels, underscoring broadening inflationary pressure that may help…