The corporate goods price index for July (preliminary figure, 2020 average = 100) announced by the Bank of Japan on the 10th was 114.5, an increase of 8.6% from the same month last year. It was the 17th consecutive month that prices exceeded the previous year's level. Although the rate of increase slowed down from June (9.4%), the highest growth rate since December 1980 continues. Concerns over supply constraints following Russia's invasion of Ukraine have kept raw material prices at a high level, further accelerating the yen's depreciation.
The July index was the highest since the survey began in 1960. The rate of increase was 0.2 percentage points higher than the median private estimate of 8.4%. The rate of increase in June was revised upward from 9.2% at the time of the announcement last month to 9.4%, and April was also revised upward from 9.9% to 10.0%.
Of the 515 items announced, 418, or 80%, rose. By item, steel (27.2%), petroleum/coal products (14.7%), metal products (11.1%), chemical products (10.9%), and non-ferrous metals (9.8%) showed the highest rates of increase. Price hikes are also spreading to products close to consumers, such as food and drink (5.5%) and textile products (5.3%).
Read More Here (Japanese): https://tinyurl.com/ysdk2duj
Original News Source: (c) Nikkei Newspaper #akonikk
Comments