MNI BRIEF: Japan April CGPI Rises 0.9% Y/Y, Higher Import Prices

Japan's corporate goods price index rose 0.9% y/y in April from March’s revised 0.9%, while import price rises accelerated and posted their third straight increase, data released by the Bank of Japan showed on Tuesday.

The data indicated the rise in import prices will increase pressure on firms to raise retail prices, slowing the y/y drop of goods prices, although the pace of the pass-through of cost increases in the downstream slowed.

BOJ Governor Kazuo Ueda said that the BOJ is carefully watching the impact of the weak yen on prices, including whether it will increase upside risk to prices.

The CGPI rose 0.3% m/m in April after rising 0.2% in March. Import prices rose 6.4% y/y on a yen basis in April for the third straight rise following 1.4% in March.

BOJ officials are focused on whether corporate pass-through of cost increases caused by the weak yen will revive, possibly increasing upward pressure on inflation rates. (See MNI INTERVIEW: BOJ Eyes Yen Despite Small Impact So Far-Sekine)