Japan Producer Prices Up 3.2 Pct in 2025

Tokyo, Jan. 15 (Jiji Press)–Japan’s producer prices in 2025 went up 3.2 pct from the previous year, reflecting surges in rice prices and progress in the pass-through of increased material costs, the Bank of Japan said in a preliminary report Thursday. The producer price index, which shows the prices of goods traded between companies, stood at 126.7 against the 2020 base of 100, hitting a new record high for the fourth consecutive year. The index’s growth rate expanded from 2.4 pct in 2024. By category, prices of agricultural, forestry and fisheries products surged 36.9 pct, mainly due to soaring rice prices. Food and beverage prices rose 4.5 pct as companies passed on higher raw material and supply costs, and nonferrous metal prices climbed 8.8 pct amid strong copper market conditions. The government’s scaling back of electricity and gas cost relief measures also helped push up producer prices. On the other hand, steel prices fell 5.4 pct due to sluggish market conditions stemming from China’s economic slowdown and excess production. Chemical product prices declined 2.9 pct following drug price revisions and falls in crude oil prices. The import price index, which measures the cost of goods imported from overseas, went down 4.3 pct in yen terms. It turned downward from the previous year’s 2.7 pct increase due to lower crude oil prices. In December alone, the producer price index climbed 2.4 pct from a year earlier to 128.1, marking the 58th straight month of growth. Of the 515 items surveyed, 364 saw price increases while 127 posted decreases. Prices of agricultural, forestry and fisheries products jumped 26.8 pct and those of food and beverages rose 5.0 pct, while petroleum and coal product prices fell 8.6 pct. END [Copyright The Jiji Press, Ltd.]