Japan’s Oct wholesale costs rise 9.1% yr/yr By Reuters

By Leika Kihara

TOKYO (Reuters) -Japan’s wholesale costs rose 9.1% in October from a 12 months earlier, slowing from the earlier month’s file acquire however remaining at excessive ranges because the weak yen continued to inflate the price of uncooked materials imports for corporations.

The information underscores the problem policymakers face in defending a fragile financial restoration from stubbornly excessive import prices which can be hurting company earnings and consumption.

The company items value index (CGPI), which measures the value corporations cost one another for his or her items and companies, rose 9.1% in October from a 12 months earlier, knowledge confirmed on Friday.

The rise was slower than a file 10.2% soar in September however exceeded a median market forecast for an 8.8% acquire. The index, at 117.5, prolonged a file excessive for a seventh month.

“October is the beginning of the latter half of Japan’s fiscal 12 months 2022, so corporations from a variety of industries took the chance to lift costs and cross on increased uncooked materials prices,” a BOJ official instructed a briefing.

Petroleum and coal costs rose 2.6% in October from a 12 months earlier, slowing from a 14.5% acquire in September reflecting falling international gas costs.

However metal costs rose 22.4% and people for meals by 6.9% as producers continued to translate increased prices to automakers and retailers, the info confirmed.

The yen-based import value index surged 42.6% in October after a 48.5% spike within the earlier month, the info confirmed, an indication the forex’s declines have been pushing up the price of importing items starting from gas, meals and different commodities.

Rising gas and uncooked materials costs have weighed on Japan’s fragile financial restoration, as extra corporations cross on increased prices to households in successful to still-weak consumption.