Japan Producer Prices Up 0.3 Pct in Nov.

Jiji Press

16:18 JST, December 12, 2023

TOKYO (Jiji Press) — Japan’s producer prices in November rose 0.3% from a year earlier, logging a slower pace of increase for 11 straight months, the Bank of Japan said Tuesday.

The producer price index, which measures costs of goods traded between businesses, stood at 119.5 against the 2020 average of 100, rising for 33 months in a row.

The growth slowed as moves to pass higher prices on to buyers are coming to an end. In addition, government subsidies aimed at curbing gasoline prices pushed down the index’s increase by 0.9 percentage point.

Producer prices were up for 405 of the 515 items surveyed, while prices fell for 93 items.

Despite the prolonged effects of surging raw material prices, the growth pace of the index has been slowing down since January this year, after last year’s surge.

Producer prices climbed 4.0% for food and beverages, 2.2% for transportation equipment and 12.3% for ceramic, stone and clay products. The increases mainly reflected sales price hikes in response to higher prices of raw materials, energy, components, as well as transportation fees and other costs.

On the other hand, prices of electric power, gas and water plunged 24.5% because of government subsidies, while iron and steel prices dropped 4.1% due to falling iron ore prices.

The BOJ also said that the yen-based import price index in November decreased 6.1% year on year, down for the eighth consecutive month.