The Corporate Goods Price Index for August released by the Bank of Japan rose 7.6% year on year, remaining at a high level for 3 consecutive months. Prices rose notably across a range of items, particularly crude oil and petrochemical products, and reports indicate that a monetary policy rate hike is increasingly likely.
The Corporate Goods Price Index for August released by the Bank of Japan rose 7.6% year on year, remaining above 7% for 3 consecutive months. The index measures price movements for goods traded between businesses, and the year-on-year rate of increase has continued.
By category, prices of crude oil and naphtha continued to rise amid the impact of the situation in the Middle East, with petroleum and coal products up 14.7% and chemical products up 13.9%.
The Bank of Japan is scheduled to hold a monetary policy meeting next week, and reports indicate that some Policy Board members have pointed to the possibility that rising prices could push up consumer prices. This has led to views that a policy rate hike is becoming increasingly likely.