Market News

Investing.com-- Japanese producer price index inflation unexpectedly cooled in September, pressured by a stronger yen and as some import prices, especially those of oil and gas, fell during the month.

PPI grew 6.8% year-on-year, Bank of Japan data showed on Tuesday. The print missed market expectations it would remain steady at a 3-½ year high of 7.6%.

PPI fell 0.3% month-on-month, missing expectations for growth of 0.5%.

The drop was spurred by strength in the yen, following currency market from Tokyo and the United States.

Cooling oil and commodity prices also factored into lower inflation for the month, especially as oil fell in September on some improving flows in the Middle East.

But despite September's drop, Japanese PPI inflation still remained high, keeping markets on edge over more interest rate hikes by the BOJ.

The central bank hiked rates by a cumulative 50 basis points this year amid increasing concerns over sticky inflation.

High commodity prices and a weak yen spurred sharp gains in Japanese PPI inflation this year, which was then seen spilling over into consumer inflation.