Tokyo, Nov. 12 (Jiji Press)–Japan’s producer prices in October rose 7.1 pct from a year earlier, after a 6.8 pct rise in the previous month, as rising crude oil prices sent those for oil, coal and chemical products higher, the Bank of Japan said Thursday. The producer price index, which measures the costs of goods traded between businesses, came to 136.8 against the 2020 average of 100, the central bank said. The rise in producer prices could spill over into consumer prices if businesses pass on higher costs to customers. Consumer inflation has been contained by the government’s subsidies for electricity and gas bills, but their expiration could put upward pressure on consumer prices. Of the 515 items surveyed by the BOJ, producer prices increased for 469 items and fell for 35. Prices of oil and coal products climbed 15.9 pct in October, an acceleration from an 11.5 pct rise in the previous month. Prices of chemicals rose 15.5 pct, up from a 13.4 pct gain the previous month. Reflecting soaring demand related to artificial intelligence, prices of nonferrous metals jumped 31.7 pct mainly due to higher copper prices, after increasing 40.3 pct in the previous month. Producer prices rose as “businesses raised prices of some items to pass on higher costs as part of their half-year price revisions,” a BOJ official said. The import price index, which measures the price of goods imported from overseas, increased 24.8 pct in yen terms and 19.2 pct on a contract currency basis. END [Copyright The Jiji Press, Ltd.]
