Japan Producer Prices Up 4.9 Pct amid Middle East Tensions

Tokyo, May 15 (Jiji Press)–Japan’s producer prices in April increased 4.9 pct from a year earlier, the biggest rise since May 2023, amid the Middle East tensions, Bank of Japan data showed Friday. The producer price index, which measures the cost of goods traded between businesses, stood at 132.8 against the 2020 base of 100, the central bank said in a preliminary report. Of the 515 items surveyed, 386 rose while 106 fell. By category, prices of petroleum and coal products, such as naphtha, climbed 5.3 pct, against the drop of 7.1 pct for March. Chemical products, including ethylene, posted a rise of 9.2 pct, far bigger than the previous month’s 0.8 pct. Nonferrous metal prices saw their pace of increase accelerate to 37.9 pct from 31.5 pct due to soaring market prices for copper and aluminum. Supply concerns are mounting following a decrease in production at aluminum facilities in the Middle East amid the conflict between U.S.-Israeli forces and Iran. Prices of agricultural, forestry and fishery products grew 12.5 pct on higher rice prices, albeit at a slower pace than March’s 17.4 pct. The import price index rose 17.5 pct from a year earlier in yen terms and 7.9 pct on a contract currency basis. “We’ll keep a close eye on global commodity markets, including effects on them from the Middle East situation, and how supply chains are affected,” a BOJ official said. END [Copyright The Jiji Press, Ltd.]