Japan producer prices keep rising in July, as weaker yen makes import more expensive

August 13, 2024

Japan producer inflation continued rising in July with +0.3% hike over the month and +3.0% over the year basis. However, the rate of ascending has slowed as monthly increase resulted in sharp decline in 3-month moving average to 0.16% from 0.4% in June and yearly gain by 0.1% from +2.9% was a smallest in the last six months.
Data shows inflation is heading upward and is good sign for BoJ which raised interest rate to 0.25% in July and hinted on further hikes.
Weakening yen is a reason for inflation acceleration as it makes raw materials, of which Japan’s industry is highly dependant, more expensive