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

(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 |
MNI Tokyo Bureau | +81 90-2175-0040 |

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