As import and upstream prices continue to rise beneath the Nikkei's elevated levels, consumer prices have remained low. Experts say this magma of rising prices will be passed through to consumers from the autumn onward, bringing the trend into full force.
As the Nikkei Stock Average remains near its all-time highs, views have emerged that inflationary pressure is building beneath the surface of the Japanese economy. Focusing on observations by Asakura Kei (朝倉 慶), who is known for his commentary on earnings and market analysis, the report describes a phase in which prices are rising in Japan, in contrast to the cooling of inflation in the United States.
The latest data show import prices at 29.1% and upstream prices, or corporate goods prices, at 7.2%, both elevated, while downstream consumer prices remain at 1.7%, widening the gap between upstream and downstream prices. This is expected to become a major factor driving future price pass-through.
In the United States, PPI declined from 5.5% to 4.7%, while CPI also fell from 4.2% to 3.5% to 3.4%, indicating that inflation is continuing to cool. Japan, by contrast, is moving in the opposite direction, and views have emerged that consumers should expect a heavier burden as price pass-through gathers pace from the autumn onward.