MNI BRIEF: Japan Dec CGPI Flat Y/Y; Lowest Since Feb 2021

The y/y rise in Japan's corporate goods price index slowed to 0.0% in December from November’s 0.3%, the 12th straight deceleration and its lowest level since February 2021 (-0.9% y/y), indicating that the consumer price index will continue to slow, Bank of Japan data showed Tuesday

Lower electric power, gas and water prices due to government subsidies drove December's decline.

Pass-through of cost increases continued in beverages and foods but upward pressure on goods prices weakened.

The CGPI rose 0.3% m/m in December flat against November's revised 0.3%.

Import prices fell 4.9% y/y on a yen basis, the ninth straight drop following November’s revised 6.1% fall, showing upward pressure from import price continued to weaken.

Japan’s government tweaked its assessment on the consumer price index late last year, while maintaining its broad economic view. (See MNI: Japan Govt Tweaks Assessment On Consumer Price Index)