Japan producer prices climb 9% in August

Yomiuri Shimbun file photo
The Bank of Japan building

TOKYO (Jiji Press) — Producer prices in Japan jumped 9.0% in August from a year before due to soaring commodity costs following Russia’s invasion of Ukraine as well as the impact of the yen’s rapid decline, the Bank of Japan said in a preliminary report Tuesday.

The producer price index, which measures costs of goods traded between businesses, stood at a record high of 115.1 against the 2020 base of 100, rising for the 18th straight month, the central bank said.

Reflecting rising crude oil prices, prices for electricity, city gas and water supplies soared 33.4%, steel prices jumped 26.1%, prices for lumber and wood products climbed 20.2% and those for oil and coal products rose 15.6%.

The food and beverage price index rose 5.6% to a record high of 108.2.

Of the 515 goods surveyed by the BOJ, 431, or more than 80%, saw prices grow as companies have been increasingly passing on rising raw material costs to their clients.

A BOJ official said the central bank will keep a close watch on the impact of soaring raw material costs on prices.

The yen-based import price index surged 42.5%, with nearly half of the rise attributable to the yen’s fall. However, the rise was smaller than the 49.1% increase posted in July amid falling commodity prices.