Aug wholesale prices rise 2.5 yryr vs forecast 2.8
Rise in yenbased import prices slows sharply in August
Slowdown may affect consumer inflation, BOJ rate hike timing

TOKYO, Sept 12 Reuters Japan39;s annual wholesale inflation slowed in August as the yen39;s rebound weighed on import costs, data showed on Thursday, taking some pressure off the central bank to address upward price risks with nearterm interest rate hikes.

The corporate goods price index CGPI, which measures the price companies charge each other for their goods and services, rose 2.5 in August from a year earlier, Bank of Japan BOJ data showed, slowing from a 3.0 gain in July. It fell short of market forecasts for a 2.8 increase.

The Japanese currency39;s sharp rise during the month weighed on the yenbased import price index, which rose by just 2.6 in the year to August after a 10.8 spike in July, the data showed.

On a monthonmonth basis, wholesale prices fell 0.2 in August. The yenbased import price index also dropped 6.1 in August from the previous month.

The slowdown in wholesale inflation, which will affect the broader consumer price data in coming months, may influence the timing of the BOJ39;s next interest rate hike.

The BOJ ended negative interest rates in March and hiked shortterm borrowing costs to 0.25 in July on the view Japan was making steady progress towards durably achieving its 2 inflation target.

BOJ Governor Kazuo Ueda cited the risk of an inflation overshoot from rising import…