Japan’s July Producer Prices Rise 7.2% Annually, Below Forecasts
| Pair | Now | Since publish |
|---|---|---|
| USDJPY | — | — |
- Japan producer prices rose 7.2% annually in July, below forecast.
- Yen-based import prices jumped 29.1% in July, adding cost pressure.
- Persistent costs remain high, strengthening BOJ rate hike case.
Japan’s producer prices increased by 7.2% year-on-year in July, according to data released by the Bank of Japan on Thursday. This annual rise was lower than the 7.4% increase anticipated by analysts and represented a slight deceleration from June’s upwardly revised 7.3% gain. On a monthly basis, producer prices advanced by 0.1%, significantly undershooting the 0.6% forecast and slowing from June’s revised 0.5% increase. The data indicates a modest easing in wholesale inflation, even as global raw material prices continue to exert upward pressure on import costs.
Japan’s yen-based import prices jumped by 29.1% in July, adding to cost pressures. This significant rise, alongside the 7.2% annual increase in producer prices, indicates continued high cost pressure on companies. Despite producer prices rising below forecasts, the 7.2% growth remains elevated and near multi-year highs, with the modest undershoot not signaling a meaningful turn towards disinflation. These persistent cost pressures strengthen the case for a potential Bank of Japan interest rate hike, with officials continuing to consider their policy path.