Japan saw a modest increase in wholesale price inflation in September, largely due to higher costs for essential food items such as rice.
According to the Bank of Japan, the preliminary Producer Price Index saw an increase of 2.8 percent compared to the same month last year, a modest rise from the 2.6 percent recorded in August, as reported by Japan’s NHK Radio. This index tracks the prices that businesses charge one another for goods and services.
Officials at the BOJ attribute the increase in rice prices to higher transportation and fertilizer costs. Additionally, egg prices have surged due to unseasonably warm weather.
Data from the BOJ reveals that import prices in September fell by 2.6 percent in yen terms year-on-year, marking the first decline since January. This decrease is attributed to a stronger yen and lower crude oil prices.
October has seen a wave of price increases for various goods and services throughout Japan.
Central bank officials are closely monitoring whether rising labor costs will be reflected in the prices businesses set for each other.
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