Japan Producer Prices Jump 7.1 Pct in June

Tokyo, July 10 (Jiji Press)–Japan’s producer prices in June jumped 7.1 pct from a year earlier, the steepest climb since March 2023, Bank of Japan data showed Friday. The producer price index, which measures the costs of goods traded between companies, stood at 135.4 against the 2020 average of 100, the BOJ said in a preliminary report. The pace of increase accelerated from 6.6 pct in May. Prices grew across a variety of products such as petroleum and coal products and nonferrous metals, reflecting higher materials prices stemming from the Middle East turmoil. Of the 515 items surveyed, 418 posted price increases while 81 logged declines. Prices of nonferrous metals, including aluminum, soared 39.2 pct, in a slight slowdown from a 42.1 pct climb in May. Petroleum and coal product prices shot up 22.8 pct, up from 13.7 pct, and chemicals prices rose 14.4 pct, up from 14.3 pct. Prices of gasoline and other products increased due to a reduction in government subsidies, despite a drop in crude oil prices after the United States and Iran signed a memorandum of understanding aimed at ending their fighting. Efforts to pass higher costs on to prices are spreading to some goods that are downstream in the supply chain, a BOJ official said. The import price index, which measures the costs of goods imported from overseas, rose 29.7 pct from a year earlier in yen terms and 17.8 pct on a contract currency basis. END [Copyright The Jiji Press, Ltd.]