MNI BRIEF: Japan July CGPI Rises 3.0% Y/Y, Higher Import Price

Japan's corporate goods price index rose 3.0% y/y in July against June's unrevised 2.9%, while import price rises accelerated for the sixth straight month, up 10.8% y/y from the prior month's 9.5%, data released by the Bank of Japan showed on Tuesday.

The data indicated the rise in import prices will slow due to the correction of the yen’s weakness but corporate pass-through will continue due to higher labour costs.

The July data was boosted by prices of electric power, gas and water (+6.7% y/y vs. 0.0% in June) and chemical and related products (+2.5% vs. +2.1%).

The CGPI rose 0.3% m/m in July after rising 0.2% in June.

BOJ officials are focused on how the correction of the yen’s weakness has affected import prices and corporate price-setting behaviour. (See MNI POLICY: BOJ Still On Course For Hikes Despite Volatility)