Japan’s wholesale inflation eased slightly in October, with producer prices rising 2.7% from a year earlier, down from a revised 2.8% in September, according to Bank of Japan data.Data post is here:Japan October PPI +0.4% m/m (expected +0.3%) & +2.7% y/y (expected +2.5%)The slowdown was driven partly by falling import costs, with the import price index down 1.5% on the year. The outcome was marginally above economists’ expectations for a 2.5% gain, suggesting underlying price pressures remain firm even as imported cost pressures soften.The corporate goods price index (CGPI) is closely watched by the BOJ as an early signal of future consumer inflation. While headline CPI has been above the BOJ’s 2% target for more than three years, Governor Kazuo Ueda has emphasised the need to move cautiously on rate hikes, arguing that the central bank must be confident inflation is being fuelled by domestic demand rather than higher raw material costs.Ueda spoke today:BoJ Ueda: BOJ striving to achieve moderate inflation, wage growth, helping improve economyUeda says BOJ ready to act if long-term yields move out of line with fundamentalsUSD/JPY has backed away from 155 without falling too far. This article was written by Eamonn Sheridan at investinglive.com.