In October, Japanese wholesale inflation dipped below 1%, marking the first time in just over 2.5 years, according to Monday’s data.

This suggests a waning of cost-push pressures that had been contributing to the increase in prices for a broad array of goods.

The deceleration in inflation, primarily driven by commodities, aligns with the Bank of Japan’s forecasts, Reuters reported.

Analysts are now focusing on whether wages and household spending will experience sufficient growth to generate a demand-driven increase in consumer prices.

Written by B.C. Begley