Japan Producer Prices Up 7.2 Pct in July

Tokyo, Aug. 13 (Jiji Press)–Japan’s producer prices in July rose 7.2 pct from a year earlier, driven by elevated prices across a wide range of products, especially nonferrous metals and petroleum and coal products, amid tensions in the Middle East, Bank of Japan data showed Thursday. The pace of increase, however, slowed from the 7.3 pct rise in the previous month, partly because the surge in crude oil prices eased to some extent. The producer price index, which measures the costs of goods traded between companies, stood at 135.8 against the 2020 average of 100, the BOJ said in a preliminary report. Of the 515 items surveyed, 434 recorded price increases, while 69 posted declines. Prices of nonferrous metals soared 40.6 pct, against a 39.3 pct rise in the previous month, led by higher aluminum and copper prices. Amid persistently high crude oil prices, oil and coal product prices jumped 17.5 pct, after rising 22.8 pct. Prices of chemical products, including polyethylene, climbed 12.9 pct, compared with a 15.1 pct ascent. Prices of information and communications equipment gained 17.3 pct, following a 17.5 pct increase, as memory chip prices rose on the back of growing artificial-intelligence demand. A BOJ official said, “We will closely monitor the impact of AI-related demand on price levels.” In the reporting month, the import price index, which measures the costs of goods imported from overseas, went up 29.1 pct in yen terms and 17.7 pct on a contract currency basis. END [Copyright The Jiji Press, Ltd.]