Japan wholesale prices rise the most in 5 months, put squeeze on corp profits
TOKYO – Japanese corporate goods prices grew the most in five months in September, Bank of Japan data showed on Thursday, highlighting the squeeze on business profits from persistently strong wholesale inflation.
The 9.7 percent year-on-year rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, was much bigger than a median market forecast for a 8.8 percent increase, BOJ data showed.
It was the biggest annual increase since a 9.8-percent rise registered in April, underlining the stiff margin pressure facing corporates as many of them struggle to pass on the costs to consumers.
A weak yen, which inflates the cost of imports, has exacerbated already high wholesale inflation from a global surge in commodity prices.
That combination has driven the index, at 116.3, to a record high since the survey began in 1960.
Reflecting persistently strong input pressure, wholesale prices rose 0.7 percent in September from the previous month, when it increased 0.4 percent .
The yen-based import price index rose 48 percent year-on-year in September, after a revised 43.2 percent in August and a revised 49.2 percent in July, the data showed.
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