Japan Producer Prices Up 5.1% on Year in May

Jiji Press

11:16 JST, June 13, 2023

TOKYO (Jiji Press) — Producer prices in Japan rose 5.1% from a year earlier in May, up for the 27th straight month, the Bank of Japan said Monday.

The pace of increase decelerated for the fifth consecutive month to hit the lowest level since June 2021.

The producer price index, which measures costs of goods traded between businesses, stood at 119.1 against the 2020 base of 100.

The growth continues to slow reflecting government measures to ease the pain of higher electricity and gas prices.

Producer prices climbed for 433 of the 515 items surveyed by the central bank.

Electricity, city gas and water supply rates rose 13.1%. But the growth was weaker than 24.3% in April because of a cut in surcharges related to sales of electricity produced with renewable energy sources to power companies.

Beverage and food prices rose 7.9%, heftier than 7.5% in April, amid growing moves to pass on higher materials costs to prices.

The yen-based import price index dropped 5.4% year on year, down for two months in a row, due chiefly to lower crude oil prices. The index was down 9.6% on a contract currency basis.