MNI BRIEF: Japan Feb CGPI Rises 0.6% Y/Y, Import Price Up

Japan's corporate goods price index rose 0.6% y/y in February against January’s 0.2%, the first acceleration in 14 months, while import price posted their first y/y rise in 11 months, up 0.2% y/y, data released by the Bank of Japan showed on Tuesday.

The rise in import costs, which reversed their 0.1% fall in January, 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.

The CGPI rose 0.2% m/m in February after being unchanged. Prices for beverages and foods rose 4.0% y/y in February, slightly slower than January’s 4.5%. Prices for electric power, gas and water fell 21.9% y/y in February vs. -27.7% in January due to the base-year effects.

A BOJ official said, while the y/y rise in CGPI accelerated last month, the trend remained unchanged.

The BOJ meets next week with chance of policy adjustment increasing. (See MNI POLICY: Weaker Econ Data Risk May Push March BOJ Action)