Japan's September PPI Growth Decelerates as Bank Lending Holds Steady

Japan's Producer Price Index (PPI) for September increased by 6.8% year-on-year, a slowdown from 7.6% in August and below expectations. This suggests easing producer-side cost pressures, potentially reducing future inflation. Concurrently, Japanese bank lending grew 5.3% year-on-year, maintaining its previous pace but slightly missing market forecasts. Despite the PPI slowdown, elevated import prices keep a Bank of Japan rate hike scenario under consideration.