MNI BRIEF: Japan Oct CGPI Rises 3.4% Y/Y, Import Prices Drop
MNI (TOKYO) - Japan's corporate goods price index rose 3.4% y/y in October, accelerating from September’s revised 3.1%, and despite import prices posting their second straight drop, falling 2.2% y/y, data released by the Bank of Japan showed on Wednesday.
The data indicated that the drop of import price caused by the correction of the yen’s fall will ease pressure on firms to raise prices. Company price revisions, however, drove October's CGPI result, which increased 0.2% m/m after rising 0.3% in September.
Petroleum and coal product prices (+4.5% vs. +1.5%), agriculture, forestry and fishery products (+26.0% vs. +18.2%) and of nonferrous metals (+14.6% vs. +9.7%) drove the CGPI print. .
BOJ officials are encouraged by the October price revisions as firms are transferring higher labour costs to retail prices. They will now focus on the October nationwide CPI due out on Nov. 22 to examine services prices. (See MNI BOJ WATCH: Ueda Opens Door To Dec Hike, Eyes U.S., Mkts)