Japan wholesale inflation eases slightly to 7.2%, undershooting expectations

* Producer price inflation in Japan fell to 7.2% in July, below expectations. * Yen weakness continued to drive up import costs, rising 29.1% year-over-year. * Consumer inflation stayed subdued at 1.6%-1.9% amid government subsidies. Japan's producer prices rose 7.2% year-on-year in July, missing forecasts and easing from 7.3% in June. Electricity costs contributed most, partly offset by lower energy and chemical prices. Despite yen-driven import inflation of 29.1%, headline consumer inflation held at 1.9% and core at 1.6%, thanks to subsidies. The Bank of Japan noted upside risks from oil prices and considered faster rate hikes.