MNI BRIEF: Japan Nov CGPI Rise Slows to 0.3% Vs. Oct 0.9%

The y/y rise in Japan's corporate goods prices index slowed to 0.3% in November from October's revised 0.9% for the 11th straight deceleration, showing that prices in the upstream continued to fall, Bank of Japan data showed Tuesday.

The index rose 0.2% m/m in November vs. revised -0.3% in October. November's result, the second straight month below 1%, was the index's lowest since February 2021 when it fell 0.9% and was driven mainly by lower utility prices due to government subsidies.

Pass-through of cost increases in the downstream, such as the services sector, continued but its pace slowed. The consumer price index will likely show a similar continue result. Prices for petroleum and related products rose 3.5% y/y, accelerating from October’s 0.5%. Import prices fell 6.1% y/y, for the eighth straight drop following October's revised 11.9% fall, showing upward pressure from import prices continued to weaken.