MNI BRIEF: Japan Oct CGPI Rise Slows to +0.8% Vs. Sept +2.2%

The y/y rise in Japan's corporate goods price index slowed to 0.8% in October from September’s revised 2.2%, the 10th straight monthly deceleration, indicating that upstream prices continued to fall, Bank of Japan data showed on Monday.

However, pass-through of downstream cost increases continued, slowing the pace of the consumer price index's fall. Several BOJ board members have judged CPI is stronger than expected.

The October index (+0.8% y/y for the lowest level since March 2021 and below 1% for the first time in over 2.5 years) was due mainly to government’s subsidies to lower utility charges. Prices for petroleum and related products rose 0.7% y/y in October, slowing from September’s 3.2%.

The October import prices fell 11.7% y/y on a yen basis, for the seventh straight drop following September’s revised 13.9% drop, while upward pressure from import prices continued to weaken.

The CGPI fell 0.4% m/m in October vs. -0.2% in September.