Rise in raw material causes Japan wholesale prices to jump 9%
Rise in raw material causes Japan wholesale prices to jump 9%
Robert Besser
14 Sep 2022, 16:47 GMT+10
- Bank of Japan data released this week reported that in August, Japan’s wholesale prices had increased 9.0 percent from 2021, matching the annual pace of growth in July
- The figures highlight the fact that high raw material costs are continuing to tighten corporate margins
- The data also showed that the rise in the corporate goods price index was mainly in line with a median market forecast of an 8.9 percent rise
TOKYO, Japan: Bank of Japan data released this week reported that in August, Japan’s wholesale prices had increased 9.0 percent from 2021, matching the annual pace of growth in July.
The figures highlight the fact that high raw material costs are continuing to tighten corporate margins.
The data also showed that the rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, was mainly in line with a median market forecast of an 8.9 percent rise.
The index, which was at a level of 115.1, saw a record high level for the fifth consecutive month, indicating that Japan is continuing to feel the effects of rising prices for raw materials.
The data also indicated that amidst crude oil and global commodity costs recently falling and taking pressure off fuel and scrap metal prices, the prices of a broad range of retail products and services, such as utility bills and electronic devices, have increased.
Also, the prices of importing already rising costs of raw materials were further driven up by the weak yen, reducing corporate profits and forcing more companies to increase prices.
In July, Japan’s core consumer inflation hit 2.4 percent, the fastest annual rise in seven and a half years.
From April to June, Japan’s economy expanded at an annualized rate of 2.2 percent, a slower-than-expected recovery from the last COVID-19 economic slump.
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