Japan’s wholesale inflation adjusted to ease global commodity pressures According to Reuters

© Reuters. FILE PHOTO: A chocolate seller at a store in the Ameyoko shopping district in Tokyo, Japan, May 20, 2022. REUTERS / Kim Kyung-Hoon

By Leika Kihara

TOKYO (Reuters) – Japanese wholesale prices rose 8.6% in July from a year earlier, data showed on Wednesday, slowing from the previous month’s pace in a sign of pressure. inflation from higher fuel and raw material costs.

Bank of Japan (BOJ) data shows rapid price growth for some goods, such as food and machinery, suggesting companies continue to shift to cost of goods. increased due to the war in Ukraine and weak yen.

The rise in the corporate commodity price index (CGPI), which measures the prices companies charge each other for their goods and services, marked the 17th consecutive month of gains but slowed compared to the previous year. the 9.4% gain was revised in June, the data showed.

Toru Suehiro, economist at Daiwa Securities, said: “Cost-push inflationary pressure will gradually weaken. “Inflation could peak soon,” he said, as the recent drop in energy costs affects prices of many commodities.

Oil and coal prices rose 14.7% in July from a year earlier, slowing from a spike of 21.8% in June.

Other products directly affected by global commodity prices, such as lumber and chemicals, also experienced moderate price increases, the data showed.

In contrast, food and beverage prices rose 5.5% in July from a year earlier, up sharply from a 4.6% increase in June, suggesting a lingering impact on input costs. higher.

The yen-based import price index spiked 48.0% in July, larger than the adjusted 47.6% gain in June, an indication that the yen’s decline played a major role in the growth. pushing up inflation.

Japan’s core consumer inflation remained above the central bank’s 2% target for the third straight month in June, as the economy faced pressure from already high global raw material prices. increase the cost of imports of this country.

But the BOJ has repeatedly said it is in no hurry to pull back on its massive stimulus, describing recent inflation as largely driven by external factors and unsustainable unless accompanied by money growth. stronger wages.

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