BOJ branch chiefs said cost-driven price rises are spreading from B2B
transactions into consumer-facing industries, as energy and raw material
costs—boosted by the Middle East conflict and a weaker yen—alongside higher
transport and labor costs have led many firms to pass through higher
inter-company prices. In its quarterly regional economic report the BOJ upgraded
assessments for two of nine regions, left seven unchanged, and said regional
economies are recovering despite some weakness. Overnight index swap markets
price the probability of a BOJ rate hike in December at over 80%.
