Japan's producer price index (PPI) in November again showed rising inflation in the corporate sector, possibly raising challenges for the nation's central bank.

Japan's PPI in November rose 3.7% on year in November, and rose 0.3% from October, reported the Bank of Japan on Wednesday. In October the PPI had risen a slightly cooler 3.6% on year.

Japan's PPI) measures prices of goods and services sold by manufacturers and producers in the wholesale market to large buyers, and is distinct from consumer price index (CPI), that measures prices at retail.

Helping to push producer prices higher in Japan were non-ferrous metal prices, up 13.6% in November on year, while agriculture, forestry and fishery products rose 31.0%. Electric power, gas and water bills rose 9.2% on year, added the Bank of Japan.

Like many nations, Japan experienced a bout of inflation during and in the aftermath of the pandemic era, due to fiscal and monetary stimulus, and supply-chain snags.

Japan's PPI rose 10.6% on year in December of 2022, the cycle's apex, and then cooled through 2023, to strike below 1% on year in early 2024.

However, through 2024 the PPI on-year inflation rate has gradually been rising, presenting a challenge for the Bank of Japan.

The Bank of Japan has a 2% annual inflation target on the nation's consumer price index (CPI) core, that excludes fresh food bills.

The PPI is often regarded as precursor to late changes in a nation's CPI, ad retailers try to recoup costs or pass on savings to customers.

In 2024, the Bank of Japan has modestly raised interest rates to combat inflation, although central bank officials have also reiterated they seek strong enough demand for labor to boost real wages, and thus consumer spending.

The Bank of Japan meets again next week to formulate monetary policies.