Japan’s producer inflation accelerates to 7.1 per cent in October
Japan’s annual producer-price increase reached 7.1 per cent in October, up from September, while prices rose 0.7 per cent over the month. Petroleum-related products contributed to the monthly rise. Preliminary central-bank figures also recorded faster import-price growth in yen than in contract currencies, separating the currency effect from the underlying foreign-currency comparison.
Economics & Markets··Evening
Annual producer inflation rises above September
Japan’s producer price index rose 7.1 per cent in October compared with a year earlier, with petroleum-related costs contributing to the increase. The Bank of Japan’s preliminary index tracks goods traded between companies.[1], [2]
Prices increased 0.7 per cent from September. The preceding month’s revised figures were a monthly decline of 0.2 per cent and an annual increase of 6.8 per cent. Excluding summer electricity surcharges, October’s monthly increase was 0.9 per cent.[1]
Petroleum and chemicals add to monthly prices
Petroleum and coal products added 0.20 percentage points to the monthly producer-price increase. Chemicals contributed 0.15 percentage points, as did electricity, gas and water. Iron and steel added 0.11 percentage points, while beverages and food contributed 0.08 percentage points. The producer index reached 136.8 against a 2020 base of 100. These are preliminary goods-price readings at the producer stage, separate from consumer prices.[1]
Yen import prices rise faster than foreign-currency prices
Import prices in yen rose 3.3 per cent over the month and 24.8 per cent over the year. In contract currencies, those increases were 2.3 per cent and 19.2 per cent respectively. Export prices measured in yen increased 1.1 per cent monthly and 16.7 per cent annually. The corresponding contract-currency export increases were 0.6 per cent and 12.2 per cent. The central bank maintains separate producer, import and export indices.[1]
