MNI BRIEF: Japan Sept CGPI Rises 2.8% Y/Y; Import Prices Drop
MNI (TOKYO) - Japan's corporate goods price index rose 2.8% y/y in September, accelerating from August’s revised 2.6% and higher than the 2.3% market estimate, but import prices posted their first drop in eight months, falling 2.6% from the prior month's 2.5% increase, data released by the Bank of Japan showed on Thursday.
The results indicated that the drop of import prices caused by the correction of the yen’s fall will ease pressure on firms to raise prices.
The CGPI remained unchanged m/m in September after falling 0.2% in August.
Prices of petroleum and coal products (+1.3% vs. -3.8%), agriculture, forestry and fishery products (+12.4% vs. +5.4%) and minerals (+4.4% vs. +2.9%) boosted September's read.
BOJ officials are increasing confident of the October price revisions as firms transfer higher labour costs to retail prices. (See MNI POLICY: BOJ Rate View Intact, Despite Dovish PM Remarks) They are focused on the October Tokyo CPI, particularly services prices, due out on Oct. 25 ahead of the Oct. 30-31 policy meeting.