Free Trial

MNI BRIEF: Japan June CGPI Rise Slows to 4.1% Vs. May 5.2%

(MNI) TOKYO

(MNI) TOKYO - The y/y rise in Japan's corporate goods price index slowed to 4.1% in June from May's revised 5.2% – the sixth straight deceleration – showing that upstream cost increases have peaked, Bank of Japan data released Wednesday showed.

Pass-through of cost increases, however, continued downstream, such as beverages and foods –mainly frozen foods – due to a time lag caused by firms transferring high costs to retail prices.

The CGPI fell 0.2% from the previous month, weighed down by lower electric, gas and water prices vs. an unrevised 0.7% fall in May. June’s rise was the lowest level since July 2021 when it increased 3.8% y/y, for the 28th straight y/y rise.

The June import price index fell 11.3% on a yen basis, the biggest fall since July 2020 when it dropped 12.7% and for the third straight decline following May’s revised 5.6% drop.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.