Japan PPI keeps BOJ hike risk alive

Japan’s PPI inflation reportedly hit 7.1%, its highest level in more than three years.
That keeps pressure on the BOJ as inflation signals remain stronger than policymakers may want.
For $JPY and Japan-linked rates, the market may start pricing higher odds of another BOJ rate hike.
The bigger signal is that Japan’s inflation story is not cooling cleanly yet.
If producer prices stay elevated, rate-hike expectations could keep building across Japanese markets.