MNI BRIEF: Japan Mar CGPI Rises 0.8% Y/Y, Higher Import Prices

Japan's corporate goods price index rose 0.8% y/y in March vs. February’s 0.7%, the second straight acceleration, while imports posted their second straight rise, up 1.4% following the prior month's 0.2% gain, data released by the Bank of Japan showed on Wednesday.

The CGPI rose 0.2% m/m in March after rising 0.2% in February.

The data indicated the rise in import prices 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.

BOJ officials are focused on whether corporate pass-through of cost increases caused by the rise in import prices resumes, possibly increasing upward pressure on inflation. (See MNI POLICY: April Services Data Key For Further BOJ Rate Move)