Japan PPI accelerated to 4.9% yoy in May, up sharply from April’s 3.8% yoy, above expectation of 4.5% yoy. That’s also the largest annual rise since September 2008. Oil and coal prices jumped 53.5% yoy. Nonferrous meals were up 41.6% yoy. Wood and lumber prices were also up 9.7% yoy.
Shigeru Shimizu, head of the BoJ’s price statistics division, said, “rising commodities prices reflecting the global economic recovery is pushing up wholesale prices for a broad range of goods.”
“The data shows companies are starting to pass on rising costs, though the gain in wholesale prices is driven more by external factors rather than domestic demand,” he said.
