Japan’s Producer Price Index rose by 3.0% yoy in July, aligning with market expectations and slightly up from June’s 2.9% yoy increase. This marks the sixth consecutive month of acceleration and the fastest rate of increase in 11 months.
A significant driver of this rise was the 10.8% yoy increase in yen-denominated costs for imported materials, which accelerated from a revised 10.6% yoy rise in June. This highlights the ongoing impact of the weak Yen on import prices, contributing to higher overall production costs.
On a month-over-month basis, PPI rose by 0.3%, again matching consensus estimates.
