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PPI Close To Expectations, Y/Y Momentum Continues To Ease


Japan's Nov PPI was close to expectations, rising 0.2% m/m (in line with the projection), while the prior was -0.3%. The y/y outcome rose 0.3%, slightly above the 0.1% forecast, while the prior was 0.9%.

  • The evolution of the PPI continues to be waning y/y momentum. The chart below plots the headline in y/y terms against Japan's headline CPI.
  • Base effects for the PPI will be less favorable as we progress through the first half of 2024.
  • In terms of the detail, we saw a decent m/m rise in petroleum, coal (+3.1%) and metals +1.4%. Elsewhere though m/m pressures were either close to flat or negative.
  • The print is unlikely to shift BOJ thinking ahead of next week's policy meeting.

Fig 1: Japan PPI Y/Y & CPI Y/Y

Source: MNI - Market News/Bloomberg

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