Japan’s annual producer price inflation slows to 6.8% in September
Japan’s non-ferrous metal prices rose 40.2% year on year in September, while import prices increased 24.5% in yen terms and firms continued passing on higher costs.
- Japan's annual producer price inflation slowed to 6.8% in September, down from 7.6% in August.
- The slowdown was primarily driven by a 13.3% annual price decline in agricultural products, specifically cheaper newly harvested rice.
- Despite the overall easing, sharp price increases were widespread, affecting 460 out of 515 surveyed items.
- Significant price hikes were still seen in sectors such as non-ferrous metals (+40.2%), information and communications equipment (+15.3%), and petroleum products (+11.5%).
Cheaper newly harvested rice helped ease Japan’s annual producer inflation to 6.8% in September from 7.6% in August, the Bank of Japan (BOJ) reported on Tuesday (October 13).
Sharp price increases nevertheless continued across a wide range of products amid turmoil in the Middle East.
Japan’s agricultural, forestry and fishery products recorded a 13.3% annual price decline in September because rice had become cheaper.
High inventories were weighing on the prices of newly harvested rice.
Japan’s September survey identified 460 items with price increases and 42 with reductions, from a total of 515.
For companies’ customers, costlier materials and parts continued to mean higher prices, a BOJ official said.
A surge in memory prices, fuelled by demand associated with artificial intelligence, helped push Japan’s information and communications equipment prices 15.3% above their year-earlier levels in September.
Japan’s petroleum and coal products were priced 11.5% above their year-earlier levels in September.
For non-ferrous metal products, a group including copper and aluminium, the annual increase was 40.2%.
With average 2020 prices assigned a value of 100, Japan’s producer price index registered 135.7 for September.
The measure tracks the prices involved in transactions between businesses.
Japan’s import price index showed a 17.9% annual increase for September when calculated in the currencies used in trade contracts.
The index, covering the prices of goods bought from overseas, rose 24.5% in yen terms.
[Copyright The Jiji Press, Ltd.]
