Latest news with #CGPI
CNA
10-07-2025
- Business
- CNA
Japan June wholesale prices rise 2.9% y/y
TOKYO :Japan's annual wholesale inflation slowed in June for the third straight month, data showed on Thursday, backing up the central bank's view that price pressures from rising raw material costs will gradually dissipate. The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, rose 2.9 per cent in June from a year earlier, Bank of Japan data showed, matching a median market forecast and slowing from a revised 3.3 per cent gain in May. The yen-based import price index fell 12.3 per cent in June from a year earlier, after a 10.3 per cent drop in May, indicating the currency's rebound was pushing down raw material import costs.
Business Times
11-06-2025
- Business
- Business Times
Japan's wholesale inflation slows, taking pressure off BOJ
[TOKYO] Japan's annual wholesale inflation slowed in May on falling import costs for raw materials, data showed on Wednesday, taking some pressure off the central bank to raise interest rates. But the rise in wholesale prices for food and beverages gathered pace in May in a sign global uncertainties and soft consumption are not discouraging firms to pass on higher costs. The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, rose 3.2 per cent in May from a year earlier, data showed, falling short of a median market forecast for a 3.5 per cent gain. It followed a revised 4.1 per cent increase in April and marked the slowest year-on-year rise since a 3.1 per cent gain in September. 'As wholesale inflation slows, consumer prices will also come under downward pressure with a lag,' said Masato Koike, senior economist at Sompo Institute Plus. 'The BOJ may have lost the opportunity to raise interest rates because inflation will have slowed significantly by the time the fog hanging over Japan's tariff talks (with the US) clears,' he said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Prices of steel goods fell 4.8 per cent and those of chemical products were down 3.1 per cent, while non-ferrous metals products saw prices slide 2.1 per cent, the data showed. The yen-based import price index fell 10.3 per cent in May from a year earlier after a 7.3 per cent drop in April, indicating the currency's rebound was pushing down raw material import costs. By contrast, prices of food and beverages rose 4.2 per cent in May, accelerating from a 4.0 per cent increase in April in a sign of simmering inflationary pressure, the data showed. Japan is struggling to reach a deal with Washington in tariff negotiations, clouding the outlook for its economy, which is heavily reliant on automobile shipments to the US. The uncertainty over US trade policy forced the BOJ to cut its growth forecasts on May 1, suggesting the timing of its next rate hike may be delayed despite steadily rising inflation. Japan's core consumer inflation hit 3.5 per cent in April, marking the fastest annual pace in more than two years and exceeding the BOJ's 2 per cent target for more than three years, due largely to a surge in food costs. While the BOJ expects food inflation to moderate later this year, it has signaled its readiness to raise rates again once the economy resumes a recovery on solid wage gains. The BOJ ended a decade-long stimulus programme last year and in January raised interest rates to 0.5 per cent on the view Japan was on the cusp of durably hitting its 2 per cent inflation target. A Reuters poll, taken on May 7-13, showed most economists expect the BOJ to hold rates steady through September with a small majority forecasting a hike by year-end. REUTERS
CNA
11-06-2025
- Business
- CNA
Japan wholesale inflation slows, taking pressure off BOJ
TOKYO :Japan's annual wholesale inflation slowed in May on falling import costs for raw materials, data showed on Wednesday, taking some pressure off the central bank to raise interest rates. But the rise in wholesale prices for food and beverages gathered pace in May in a sign global uncertainties and soft consumption are not discouraging firms to pass on higher costs. The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, rose 3.2 per cent in May from a year earlier, data showed, falling short of a median market forecast for a 3.5 per cent gain. It followed a revised 4.1 per cent increase in April and marked the slowest year-on-year rise since a 3.1 per cent gain in September. "As wholesale inflation slows, consumer prices will also come under downward pressure with a lag," said Masato Koike, senior economist at Sompo Institute Plus. "The BOJ may have lost the opportunity to raise interest rates because inflation will have slowed significantly by the time the fog hanging over Japan's tariff talks (with the U.S.) clears," he said. Prices of steel goods fell 4.8 per cent and those of chemical products were down 3.1 per cent, while non-ferrous metals products saw prices slide 2.1 per cent, the data showed. The yen-based import price index fell 10.3 per cent in May from a year earlier after a 7.3 per cent drop in April, indicating the currency's rebound was pushing down raw material import costs. By contrast, prices of food and beverages rose 4.2 per cent in May, accelerating from a 4.0 per cent increase in April in a sign of simmering inflationary pressure, the data showed. Japan is struggling to reach a deal with Washington in tariff negotiations, clouding the outlook for its economy, which is heavily reliant on automobile shipments to the U.S. The uncertainty over U.S. trade policy forced the BOJ to cut its growth forecasts on May 1, suggesting the timing of its next rate hike may be delayed despite steadily rising inflation. Japan's core consumer inflation hit 3.5 per cent in April, marking the fastest annual pace in more than two years and exceeding the BOJ's 2 per cent target for more than three years, due largely to a surge in food costs. While the BOJ expects food inflation to moderate later this year, it has signaled its readiness to raise rates again once the economy resumes a recovery on solid wage gains. The BOJ ended a decade-long stimulus programme last year and in January raised interest rates to 0.5 per cent on the view Japan was on the cusp of durably hitting its 2 per cent inflation target. A Reuters poll, taken on May 7-13, showed most economists expect the BOJ to hold rates steady through September with a small majority forecasting a hike by year-end.
CNA
11-06-2025
- Business
- CNA
Japan wholesale inflation slows in May
TOKYO :Japan's wholesale prices rose 3.2 per cent in May from a year earlier, data showed on Wednesday, slowing from April in a sign falling import costs for raw materials were easing price pressures for companies. The rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, compared with a median market forecast for a 3.5 per cent annual increase and follows a revised 4.1 per cent increase in April. The yen-based import price index fell 10.3 per cent in May from a year earlier after a revised 7.3 per cent drop in April, the data showed, indicating the currency's rebound was pushing down the cost of raw material imports.
Scoop
19-05-2025
- Business
- Scoop
Business Price Indexes: March 2025 Quarter
Press Release – Stats NZ Business price indexes (BPI) includes the producers price index (PPI), capital goods price index (CGPI), and farm expenses price index (FEPI).Business price indexes (BPI) includes the producers price index (PPI), capital goods price index (CGPI), and farm expenses price index (FEPI). Key facts In the March 2025 quarter compared with the December 2024 quarter: the output producers price index (PPI) rose 2.1 percent the input PPI rose 2.9 percent the farm expenses price index (FEPI) rose 0.4 percent the capital goods price index (CGPI) rose 0.5 percent. Visit our website to read this information release and to download CSV files:
