According to the Corporate Goods Price Index (CGPI) preliminary report for February released by the Bank of Japan on the 12th, the domestic corporate goods price index (CGPI) rose by 0.6% from the previous year. The photo was taken in March 2016 at the Keihin Industrial Zone in Kawasaki City (2024 Reuters/Yuya Shino)
TOKYO (Reuters) – According to the latest Corporate Goods Price Index (CGPI) report for February released by the Bank of Japan on the 12th, the domestic Corporate Goods Price Index (CGPI) rose by 0.6% from the previous year. It was the 36th consecutive month of positive growth, and the growth rate expanded from January’s 0.2%. The main reason for this was that the downward effects of the government’s electricity and gas price mitigation measures implemented from the previous year had partially dissipated. The increase was 0.2% from the previous month.
The domestic corporate goods price index in February was 120.3, the highest level since 1980, when comparable data was available. However, excluding fluctuation factors such as subsidies, the rate has remained almost flat since 2023, and a Bank of Japan official explained that “that trend has not changed for now.” The median estimate compiled by Reuters in advance was for a rise of 0.5% from a year earlier.
Food and beverages contributed the most to the increase compared to the previous year, as there was a movement to pass on rising costs of raw materials, packaging materials, energy, etc. In transportation equipment, there continued to be moves to pass on rising costs such as steel plates, parts, and logistics costs.
Electricity, city gas, and water prices decreased by 21.9% compared to the previous year. This is a narrower decline from the 27.7% drop in January.
Out of a total of 515 items, 400 items increased compared to the previous year, and 94 items decreased. A Bank of Japan official said that the Bank will continue to monitor trends in international commodity prices, import prices, and companies’ price-setting behavior, including the reflection of cost fluctuations in prices.
Toru Suehiro, Chief Economist at Daiwa Securities, said, “The corporate price index will remain flat for the time being.The consumer price index, which is closely watched, continues to have a high inflation rate, so disinflationary pressure from upstream will affect downstream. The ripple effects are likely to continue.”
*The Bank of Japan’s announcement materials can be viewed at the URL below.
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2024-03-12 13:32:47
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