Japan’s wholesale inflation has accelerated to its fastest pace in nearly a year.

TOKYO (Reuters) – Japan’s wholesale inflation accelerated in July, reaching the fastest year-on-year growth in 11 months, as a weak yen drove up already high commodity import costs, according to data released on Tuesday.

The corporate goods price index (CGPI), which tracks the prices companies charge each other for goods and services, increased by 3% in July compared to the previous year, in line with a median market forecast, according to the Bank of Japan data.

The index reached a record high of 123.1 for the eighth consecutive month, accelerating from June’s 2.9% rise.

This inflation data will be closely monitored by the central bank, which raised interest rates on July 31 to levels not seen in 15 years and indicated its willingness to increase borrowing costs further if necessary.

The yen-based import price index rose by 10.8% in July compared to the previous year, up from a revised 10.6% increase in June, reflecting the yen’s weakness and rising raw material costs.