MNI BRIEF: Japan May CGPI Rises 2.4% Y/Y, Higher Import Prices

Japan's corporate goods price index rose 2.4% y/y in May, accelerating from April's revised 1.1%, while import price rises also accelerated and posted their fourth straight increase, up 6.9% y/y for the highest level since March 2023 following April's 6.6% gain, data released by the Bank of Japan showed on Wednesday.

The data indicated that the rise in import price will slow the pace of waning pass-through caused by the recent weak yen and increase pressure on firms to raise retail prices again.

The May data was boosted by higher prices of nonferrous metals (+20.7% in May vs. +11.8%) and prices of electric power, gas and water (-7.4% vs. -19.6%).

BOJ Governor Kazuo Ueda has said that the BOJ is carefully watching the impact of the weak yen on prices, including whether it will increase upside risks.

The CGPI rose 0.7% m/m in May after rising 0.5% in April.