MNI BRIEF: Japan March CGPI Rise Slows to 7.2% Vs. Feb 8.3%

The y/y rise in Japan's corporate goods price index slowed to 7.2% in March from February’s revised 8.3%, indicating a peak in upstream cost increases, according to Bank of Japan data.

Lower prices for beverages and foods, chemicals, and related products alongside government energy subsidies drove the lower March number, which was the the 25th straight y/y rise. The data, however, showed pass-through of cost increases in the intermediate and downstream continue. A lag between the transfer of high costs to retail prices exists, which pushes up consumer prices.

The CGPI was unchanged from the previous month against the revised -0.3% in February. BOJ officials will focus more on April data as businesses typically revise prices that month each year.