Japan’s producer prices rose 2.7% year-on-year in November, in line with market expectations, according to data released on Wednesday.

The increase reflects continued upward pressure on input costs for manufacturers amid higher energy and raw material prices.

The latest reading of the Producer Price Index (PPI) marks the fifth consecutive month of annual growth, suggesting that cost pressures remain persistent even as the Bank of Japan monitors inflation dynamics closely.

Economists say the steady rise in producer prices may eventually filter into consumer prices, depending on how much of the increased cost burden companies pass on to households. However, they also note that weakening global demand and a soft yen continue to complicate the outlook for Japanese manufacturers.

The Bank of Japan is expected to consider the latest data as part of its broader assessment of price trends and wage growth as it evaluates the future path of monetary policy.