TOKYO, June 10 (Xinhua) -- Japan's wholesale prices climbed 6.3 percent year on year in May, the steepest rise in more than three years, the Bank of Japan said Wednesday, as higher petroleum-related costs stemming from tensions in the Middle East continued to put upward pressure on prices.

Photo taken on April 20, 2022 shows the Japanese yen in Tokyo, Japan. (Photo: Xinhua)

The increase in goods prices traded between companies accelerated from a revised 5.3 percent gain in April and was the fastest since March 2023, underscoring persistent inflationary pressures in Japan, an economy heavily reliant on imports of crude oil and petroleum products from the Middle East.

Nonferrous metals, chemicals and related products, and petroleum and coal products were among the categories posting the largest year-on-year price hikes.

The latest data came as the Bank of Japan is widely expected to raise its key interest rate at its upcoming policy meeting.

Kyodo News reported Tuesday that the central bank is eyeing a raise in its policy rate from 0.75 percent to a 31-year high of 1.0 percent next week, citing the need to address inflation risks posed by elevated crude oil prices.

Meanwhile, import prices surged 25.5 percent from a year earlier, the sharpest increase since November 2022, as the weakening yen drove up costs for Japanese companies to purchase goods from overseas. Export prices jumped 20.6 percent.