In what could be early signs of inflation creeping into the consumer price index, Japan's PPI posted a surprise increase in July. Official data from the Bank of Japan on Thursday showed that producer prices increased 0.40% in July, beating estimates of a 0.10% increase. July's PPI reading marks an increase in nearly 6 months after PPI remained stagnant at 0.20% growth. On a month over month basis, PPI was seen rising 0.40%. Driving prices at the factory gate higher were individual components with prices for advertising, communications and leasing while prices for transportation and postal activity fell during the same period.