Japan’s domestic producer prices rose 0.7% in October, ending two months of declines, as import prices also advanced, according to preliminary data from the Bank of Japan (BOJ).
The index stood at 136.8 on a scale with 2020 set at 100. Its annual rise quickened from 6.8% in September to 7.1% in October. The BOJ revised September’s monthly decline to 0.2%, from 0.3% in its initial report; August also recorded a 0.3% drop. The October reading follows September’s decline.
Among domestic categories, petroleum and coal products contributed 0.20 percentage points to the monthly increase. Chemicals and related products and electric power, gas and water each added 0.15 points. Agriculture, forestry and fishery products fell 6.6% from September, subtracting 0.28 points from the index.
Import prices increased 2.3% from September and 19.2% from a year earlier in contract-currency terms. On a yen basis, they rose 3.3% month over month and 24.8% year over year. Petroleum, coal and natural gas contributed 1.62 percentage points to the monthly increase measured in contract currencies, while electric and electronic products added 0.48 points.
The BOJ uses Corporate Goods Price Index as the collective name for its producer, export and import price indexes. The BOJ reports import prices in both yen and contract-currency terms. The domestic producer-price index covers domestically produced goods traded within Japan.
Reuters reported that the 7.1% annual increase exceeded a median market forecast of 6.5%; the BOJ’s release does not include a forecast. The BOJ labels the October figures preliminary and says it may revise them in each of the next three monthly updates as additional information arrives. Its next monthly report is scheduled for Dec. 10.
