Japan’s Wholesale Inflation Slows for Eighth Straight Month
A woman looks at items at a shop in Tokyo, Japan, March 24, 2023. REUTERS/Androniki Christodoulou/File Photo
TOKYO, Sept 13 (Reuters) – Japan’s annual wholesale inflation slowed in August for the eighth straight month, data showed on Wednesday, offering some relief for households and retailers hit by past sharp rises in raw material imports.
- The corporate goods price index (CGPI) rose 3.2% in August from a year earlier, matching market forecasts.
- This marks a slowdown from the 3.4% rise in July and a significant drop from the peak of 10.6% year-on-year surge in December last year.
- Economist Toru Suehiro suggests that wholesale inflation could decline in the fourth quarter due to high crude oil prices and continued falls in the yen.
- The decline in prices for certain goods cannot be ignored as it may impact households’ perception of future price movements.
- Rising wholesale prices have led to higher consumer inflation in Japan, but the Bank of Japan emphasizes the need for loose monetary policy until price increases are driven by domestic demand.
Reporting by Leika Kihara
Editing by Sam Holmes
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