Japan Producer Prices Up 6.3 Pct in May amid Middle East Turmoil

Tokyo, June 10 (Jiji Press)–Japan’s producer prices in May increased 6.3 pct from a year earlier, the biggest rise since March 2023, as crude oil prices remained high due to the deteriorating situation in the Middle East, Bank of Japan data showed Wednesday. The growth accelerated from a 5.3 pct rise in April, with price hikes spreading across a wide range of items, including petroleum and coal products as well as chemical products. The producer price index, which measures the costs of goods traded between companies, stood at 134.5 against the 2020 average of 100, the BOJ said in a preliminary report. Of the 515 items surveyed, 418 recorded price increases while 82 posted declines. Prices of petroleum and coal products climbed 13.8 pct, with the pace of increase accelerating sharply from 5.3 pct in April, while those of chemical products such as polyethylene increased 13.4 pct, compared with a rise of 10.1 pct in April. These increases came as a de facto blockade of the Strait of Hormuz fanned concerns over supplies of naphtha and other products. In addition, prices of aluminum and other products soared following attacks on production bases in the Middle East. Nonferrous metal prices saw their pace of increase accelerate to 42.2 pct from 37.9 pct. A BOJ official said that rises in crude oil and naphtha prices are affecting a wider range of products. The import price index, which measures the costs of goods imported from overseas, rose 25.5 pct from a year earlier in yen terms and 15.5 pct on a contract currency basis. END [Copyright The Jiji Press, Ltd.]