Japan’s May wholesale prices are rising at the fastest pace ever since …

Japan’s May wholesale prices are rising at the fastest pace ever since …


Japan’s wholesale prices rose 4.9% in May, the largest increase since September 2008.

As the rollout of the COVID-19 vaccine in many countries raises expectations for a global economic recovery, the prices of commodities traded between companies have risen for the third straight month.

Wholesale data was obtained when Japan’s core consumer price index, an indicator of inflation, remained near zero during the coronavirus pandemic.

Wholesale prices affect consumer prices, and economists are closely watching whether rising raw material costs are passed on to consumers. Wholesale prices in April rose 3.8%.

Oil and coal products were the main contributors to the May wholesale price surge, which surged 53.5% year-on-year, reflecting recent rises in the crude oil and other commodities markets.

As demand recovered, the price of non-ferrous metals rose 41.6%. The price of scrap has risen by 91.6%.

“The rise in the commodity market, supported by the global economic recovery, is affecting a wide range of commodities and pushing up wholesale prices in Japan,” a Bank of Japan official told reporters.

Data show that electricity, city gas and water tariffs fell 3.9% among those who fell.

The introduction of the COVID-19 vaccine raises expectations for a global economic recovery, but the effects of the pandemic still remain.

Japan lags behind other major economies such as the United States and the United Kingdom in vaccination of its population and is trying to accelerate vaccination for the Tokyo Olympics and Paralympics this summer.

The world’s third-largest economy is expected to shrink further as domestic demand weakens during the April-June quarter.

Import prices in May rose at the fastest pace since August 2008, rising 25.4% year-on-year, while export prices rose 11.0%. Both are yen-based.

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Japan’s April wholesale prices jump to rising materials …

Japan’s April wholesale prices jump to rising materials …


Japan’s wholesale prices rose at the fastest annual rate in six and a half years in April, data showed on Monday, a sign that rising energy and commodity costs are squeezing corporate profits.

Whether the COVID-19 pandemic weighs heavily on domestic consumption, helping companies pass higher costs on to households and helping central banks reach their elusive 2% inflation target, analysts said. I’m not sure about it.

“This rise is mainly due to strong global demand pushing up commodity prices,” said Shigeru Shimizu, director of the Bank of Japan’s price statistics department. He added that the price has been rising only moderately.

According to data from the Bank of Japan, the Corporate Price Index (CGPI), which measures prices of goods and services in April, rose 3.6% year-on-year, above the median market forecast of 3.1%.

The rise after a 1.2% increase in March was the fastest-paced rise since September 2014, partly swelled by the underlying effects of last year’s pandemic-related plunge.

Data show that the rise in April was primarily due to higher commodity costs, with petroleum product prices up 39.3% year-on-year and non-ferrous metal prices up 35.2%.

Timber and timber product prices rose 4.7% as a sign that the impact of rising US housing demand is widespread worldwide.

Of the 744 items in the index, 339 items increased in price, while 289 items decreased in price from the same period of the previous year.

The number of parts that went up in price exceeded the number of parts that went down for the first time in seven months.

Japanese companies are taking time to pass on higher costs to consumers who are sensitive to rising prices due to slow wage growth. That has hampered the BOJ’s efforts to raise consumer inflation to its target of 2%.

The central bank’s challenge is exacerbated by Japan’s struggle to contain the pandemic. According to a Reuters poll, the world’s third-largest economy is set to grow much slower than expected this quarter due to an extended state of emergency to combat the recurrence of infectious diseases. ..

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Japan’s wholesale prices rose 1.0% in March, recording fir …

Japan’s wholesale prices rose 1.0% in March, recording fir …


According to the Bank of Japan, domestic wholesale prices rose 1.0% year-on-year in March, the first rise in 13 months, reflecting rising oil prices and a global economic recovery from the COVID-19 pandemic. ..

Prices of commodities traded between companies rose year-on-year in February 2020, but remained below the central bank’s 2% inflation target. The latest increase followed a 0.6% decline in February.

By item, prices for petroleum and coal products rose 9.8% following a 6.0% decline revised last month. According to the Central Bank, prices of non-ferrous metals rose 28.7% due to strong demand in China. The price of scrap metal surged 63.9%, boosted by strong demand from overseas.

“The rise in prices has been driven by the recovery of the US and Chinese economies, but Japan’s demand remains weak,” a Bank of Japan official said.

The March price hike also reflects the plunge in oil prices a year ago and the global recession in the early stages of the pandemic.

“It’s too early to say that Japan’s demand has returned to pre-pandemic levels,” a Bank of Japan official added.

Electricity, gas and water bills fell 10.2%. Import prices rose 5.6% year-on-year and export prices rose 5.5%.

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