China slowdown hits Japan wholesale prices

Tokyo

JAPANESE wholesale prices fell 2.4 per cent in the year to June to mark the third straight month of declines, data showed on Friday, as soft demand in China drove down commodities markets.

While declines in raw material costs benefit Japanese manufacturers, they will keep life difficult for the Bank of Japan (BOJ) as it strives to accelerate consumer inflation towards its ambitious 2 per cent target, analysts say.