Japan Producer Prices Rise 2.0 Pct in Feb.

Tokyo, March 11 (Jiji Press)–Japan’s producer prices rose 2.0 pct in February from a year earlier, driven by higher prices for food, beverages and nonferrous metals, the Bank of Japan said Wednesday. The producer price index, which measures the costs of goods traded between businesses, stood at 128.3 against the 2020 average of 100. The size of the increase was smaller than the 2.3 pct rise in January partly due to slower growth in prices for agricultural, forestry and fishery products, including rice. The index covers 515 items, with 365 recorded price increases and 127 declines. Prices for food and beverages rose 4.6 pct, following the 5.1 pct increase in the previous month, reflecting rising costs of raw materials and logistics. Nonferrous metals prices jumped 32.5 pct, after rising 33.0 pct, as copper and gold prices climbed. Prices for agricultural, forestry and fishery products rose 18.5 pct, slowing from the previous month’s 21.9 pct gain. The pace of increase in rice prices slowed, while egg prices stabilized after being affected by bird flu a year earlier. Electricity, city gas and water costs fell 6.7 pct, following the 4.3 pct decline in the previous month, pushed down by government subsidies. Oil prices have been volatile amid escalating tensions in the Middle East following U.S.-Israeli attacks on Iran in late February. It is difficult to predict price developments with high certainty, a BOJ official said about the impact of the Middle East situation. END [Copyright The Jiji Press, Ltd.]