Economy

Japan wholesale prices rise the most in 5 months, put squeeze on corp profits

The Yomiuri Shimbun
The Bank of Japan building

Reuters

10:38 JST, October 13, 2022

TOKYO (Reuters) – Japanese corporate goods prices grew the most in five months in September, Bank of Japan data showed on Thursday, highlighting the squeeze on business profits from persistently strong wholesale inflation.

The 9.7% year-on-year rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, was much bigger than a median market forecast for a 8.8% increase, BOJ data showed.

It was the biggest annual increase since a 9.8% rise registered in April, underlining the stiff margin pressure facing corporates as many of them struggle to pass on the costs to consumers.