MNI DATA BRIEF: Japan's July CGPI Highest Since September 2008

Japan's July corporate goods price index posted the highest level since September 2008 with costs being passed to retail prices on higher commodity input levels, data released by the Bank of Japan on Thursday showed.

The index rose 5.6% on year in July, up from a 5.0% gain in June as lumber and wood products rose 33.1% y/y in July, accelerating from +22.6% in June. In 2008, the index rose 6.9% y/y. The July CGPI rose 1.1% m/m, accelerating from +0.6% in June and for the highest level since October 2019 when it rose 1.1%.

"Prices are rising broadly, reflecting the rise in international commodity prices caused by the recovering global economy," a BOJ official told reporters. He added that businesses are passing on higher costs to retail prices and upward pressure is expected to continue.

Petroleum and coal product prices jumped 38.8% in July vs. +42.0% in June, and nonferrous metal prices rose 32.3% in July vs. +37.6% in June.