MNI DATA IMPACT: Japan CGPI Posts 1st Y/Y Drop in 30 Months

     TOKYO (MNI) - Japan's corporate goods price index posted the first

year-on-year drop in 30 months in June, down 0.1% on year following +0.6% in

May, the data released by the Bank of Japan Wednesday showed.

     A BOJ official said that June's weak CGPI was caused largely by the drop in

international commodity prices amid the continued trade friction between the

U.S. and China.

     The official added that he isn't sure that the year-on-year drop in the

June CGPI is a temporary phenomenon, as it may or may not reflect weak demand

for consumer goods.

     The official, however, added that the BOJ needs to monitor developments in

demand for consumer goods.

     On the month, the CGPI fell 0.5% for the second straight drop following

-0.1% in May.

     Japan's CGPI isn't directly linked to the consumer price index, but the

June CGPI data will see BOJ economists monitor developments linking inflation

rates and corporate price hikes.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: M$A$$$,M$J$$$]