Japan Aug. wholesale prices up 7.6%, remain above 7% for 3rd month in row
TOKYO (Kyodo) -- Japan's wholesale prices in August rose 7.6 percent from a year earlier, remaining above 7 percent for the third consecutive month, d
Japan's wholesale prices surged 7.6% year-over-year in August, maintaining an elevated rate above 7% for the third straight month, according to Bank of Japan data released on Friday. The increase in inter-company traded goods slowed slightly to 7.6% from 7.7% in July, which was previously revised up from 7.2%. The Bank of Japan is evaluating the optimal timing to further raise its key interest rate to help achieve its 2% inflation goal.
Among the goods, nonferrous metals prices surged 43.3% year-over-year, outpacing July's 40.7% increase. Copper prices rose due to heightened demand for AI-related data centers, while aluminum prices climbed amid the ongoing Iran conflict. Information and communications equipment saw a 19.5% price rise, primarily driven by higher memory chip costs.
Petroleum and coal products increased by 14.7%. Beverages and food prices rose 4.3% as higher crude oil and naphtha prices boosted costs for packaging materials in frozen cooked foods and pastries. Higher crude oil prices are being passed onto downstream products, including food and beverages, and plastic products that reach consumers, according to a Bank of Japan official.
Import prices jumped 24.8% in August compared to a year ago, while export prices rose 17.9%. Sources familiar with the situation suggested the central bank may raise its policy rate to 1.25% at its two-day policy meeting beginning next Thursday, following the June hike to a 31-year high of 1.0% and its unchanged stance in July.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
