Tokyo: Japan's annual wholesale inflation experienced a slowdown for the fourth consecutive month in July, as revealed by recent data on Wednesday. This trend highlights the central bank's perspective that the inflationary pressure from raw material costs is gradually decreasing.
According to Emirates News Agency, the corporate goods price index (CGPI), which tracks the prices that companies charge each other for goods and services, saw a 2.6 percent increase in July compared to the same month last year. This marks a deceleration from the 2.9 percent growth recorded in June. The CGPI figure closely aligns with market expectations, which had anticipated a 2.5 percent rise.
Further insights from the Bank of Japan (BOJ) data show that the yen-based import price index decreased by 10.4 percent in July year-on-year, following a revised 12.2 percent drop in June. This decline in import prices is a significant factor in the overall reduction of wholesale inflation.
While the prices for chemical and steel goods saw a decrease, the data indicated a 4.2 percent rise in the prices of food and beverages over the year to July. These fluctuations in different sectors underscore the mixed impact of global economic trends on Japan's domestic market.