TOKYO: Producer prices in Japan edged up 0.2% from a year earlier in January, up for the 35th consecutive month, the Bank of Japan (BoJ) says.
The growth rate, which was unchanged from December, is decelerating as moves to pass on higher material and energy costs to prices are running their course.
In January, the producer price index, which measures the cost of goods traded between businesses, stood at 120.1 against the 2020 base of 100. Prices rose for 406 of the 515 items surveyed, and fell for 90.
“While moves to pass on higher material costs continue, such moves have slowed when compared with a while ago,” a BoJ official said yesterday.
By category, producer prices for food and beverages rose 4.4%, reflecting a rise in material and packaging costs.
Those for petroleum and coal products jumped 6.6% on a rise in yen-denominated crude oil prices. Transportation equipment prices climbed 2.2% mainly due to moves to pass on higher logistics costs.
On the other hand, prices for lumber and wood products dropped 11.7% amid falling demand. Electricity, gas and water prices plunged 27.7% chiefly due to the effects of government subsidies.
The government’s fuel subsidies pushed down the overall producer price index by about 0.5%. — The Japan News/ANN