MNI BRIEF: Japan Aug CGPI Rise Slows To 3.2% Vs. July 3.4%

The y/y rise in Japan's corporate goods price index slowed to 3.2% in Aug from July's revised 3.4%, the eighth straight monthly deceleration and the lowest level since March 2021 (1.0%), indicating a slower pace of continued pass-through of cost increases, data released by the Bank of Japan showed on Wednesday.

Pass-through of cost increases continued downstream, such as beverages and foods, as a time lag exists between firms transfering high costs to retail prices.

Solid private consumption drove the pass-through of cost increases, despite Bank officials concern over slower consumption amid persistently high prices. However, they do not expect consumption to derail from a recovery path immediately. The CGPI rose 0.3% from the previous month, mainly due to higher prices of petroleum and coal products.

The Aug import price index fell 11.8% on a yen basis, for the fifth straight drop, following July’s revised 14.4% drop.