According to the Bank of Japan, the Corporate Goods Price Index rose 7.6% year on year in August, exceeding 7% for the third consecutive month. Prices rose across a broader range of categories, driven by AI demand and higher crude oil prices.
The Corporate Goods Price Index rose 7.6% year on year in August, the Bank of Japan announced. The increase exceeded the market median forecast of 7.4%, keeping the index in the 7% range for the third consecutive month.
By category, nonferrous metal prices rose 43.3%. Higher aluminum prices and stronger AI-related demand drove up copper prices. Information and communications equipment prices also rose 19.5%.
Petroleum and coal products rose 14.7%, while chemical products rose 13.9%, with particularly sharp increases in naphtha-related products, which use crude oil as a raw material. Price pass-through has also progressed for downstream plastic products, food and beverages.
The statistics do not yet reflect current high crude oil prices, and the recent rise in crude oil prices may affect corporate goods prices with a time lag. Broad increases in raw material and energy costs have been cited as factors pushing up prices.