Japan is tipped to raise interest rates in the coming months

Wholesale prices fell 0.3% in October from September, the first month-on-month drop since June 2005, Bank of Japan figures revealed.

The news comes ahead of Tuesday's economic growth figures, which are expected to show growth is slowing.

The Bank of Japan is tipped to keep interest rates unchanged this week, but analysts say they may rise in December.

'Slow pace'

The Bank of Japan raised interest rates to 0.25% in July this year, ending its zero-rate policy which had lasted for six years.

Wholesale prices were up by a less-than-expected 2.8% in October from a year earlier.

"It's quite a slow pace of growth," said Azusa Kato, an economist with BNP Paribas.

In separate government data released on Monday, industrial output experienced a 0.7% slowdown in September compared with August, as demand for cars, auto parts and machines fell.