Japan Producer Prices Change

The producer price index of Japan rose 0.1 percent year-on-year in November 2019, rebounding from a 0.4 percent decline in the previous month and slightly above market expectations of a flat reading. Prices went up further for beverage & foods (1.1 percent vs 0.9 percent); ceramic, stone & clay products (4.2 percent vs 4.1 percent); business-oriented machinery (2.7 percent vs 2.4 percent); and transportation equipment (1.4 percent vs 1.2 percent). Also, cost fell less for chemicals (-3.5 percent vs -4.2 percent); oil & coal products (-8.3 percent vs -14 percent); non-ferrous metals (-4.3 percent vs -4.6 percent); electrical machinery & equipment (-0.1 percent vs -0.5 percent); and information & communications equipment (-0.5 percent vs -1 percent). On a monthly basis, producer prices increased 0.2 percent, easing from a 1.1 percent gain in the prior month.

The producer price index of Japan dropped by 0.4 percent year-on-year in October 2019, following a 1.1 percent decline in September and more than an expected 0.3 percent fall. It was the fifth consecutive decline in producer prices, amid trade tensions and increasing speculation of a further monetary stimulus. Cost declined primarily for petroleum & coal products (-14.1 percent vs -11.9 percent in September), on lower demand for oil; non-ferrous metals (-4.5 percent vs -4.9 percent); chemicals (-4.3 percent vs - 4.9 percent) and information & communication (-1.4 percent vs -2.7 percent). In contrast, prices rose sharply for iron & steel (2.9 percent vs 1.1 percent); production machinery (3.1 percent vs 1.5 percent), metal products (3.7 percent vs 1.9 percent) while rebounded for transport equipment (1.3 percent vs -0.5 percent). Meantime, food inflation was steady at 0.8 percent. On a monthly basis, producer prices jumped 1.1 percent after remaining unchanged in the previous month.

The Producer Price Index of Japan declined by 1.1 percent year-on-year in September 2019, following a 0.9 percent fall in the previous month and compared with market expectations of a 1.2 percent decrease. It was the fourth consecutive decline in producer prices and the sharpest since December 2016, amid trade tensions and increasing speculation of a further monetary stimulus. Cost fell further for oil (-11.9 percent vs -9.9 percent in August); chemicals (-4.8 percent vs - 4.7 percent); information & communication (-2.6 percent vs -2.5 percent); and transportation equipment (-0.5 percent vs -0.3 percent). Also, prices slowed for food & beverages (0.7 percent vs 0.8 percent); plastic (0.6 percent vs 0.8 percent); iron & steel (1.2 percent vs 1.4 percent); and ceramic, stone & clay products (2.7 percent vs 2.8 percent). On a monthly basis, producer prices were flat, after dropping 0.3 percent in the prior month.

The Producer Price Index of Japan declined by 0.9 percent year-on-year in August 2019, following a 0.6 percent drop in the previous month and compared to market expectations of a 0.8 percent fall. This was the biggest yearly decrease in producer prices since December 2016 and comes amid trade tensions between China and the United States and increasing speculation of a fresh wave of global monetary stimulus. Price declines were particularly sharp in cyclical industries, such as oil (-9.9 percent vs -8.5 percent), non-ferrous metals (-5.3 percent vs -6.7 percent), and chemicals (-4.7 percent vs -3.9 percent). In contrast, inflation for food & beverages somewhat steady (0.8 percent vs 0.9 percent). On a monthly basis, producer prices fell 0.3 percent after remaining flat in July.

The Producer Price Index of Japan declined by 0.6 percent year-on-year in July 2019, following a 0.1 percent drop in the previous month and compared to market expectations of a 0.5 percent fall, This was the biggest yearly decrease in producer prices since December 2016, amid further fall in cost of chemicals (-3.7% vs -2.5%), petroleum products (-8.2% vs -5.7%), non-ferrous metals (-6.7% vs -9.4%), business oriented machinery (-0.8% vs -0.6%), electronic components & devices (-0.2% vs -0.5%), electrical machinery & equipment (-1.4% vs -1.3%), and transport equipment (-0.3% vs -0.2%). In addition, prices slowed for beverages & foods (0.9% vs 1.1%), and plastic products (0.7% vs 1.4%). Meanwhile, prices went up slightly faster for iron & steel (1.2% vs 1.1%), metal products (2.1% vs 2%), and production machinery (1.3% vs 1.2%). On a monthly basis, producer prices were flat in July, after a 0.5 percent drop in June.

The Producer Price Index of Japan edged down 0.1 percent year-on-year in June 2019, following a downwardly revised 0.6 percent increase in the previous month and below market expectations of a 0.3 percent rise. Cost of petroleum & coal products dropped (-5.5 percent vs 1.0 percent in May) and prices fell further for chemicals (-2.4 percent vs -1.7 percent); nonferrous metals (-9.3 percent vs -6.2 percent); information & communications equipment (-1.3 percent vs -1.2 percent); and lumber & wood products (-0.9 percent vs -0.8 percent). Also, cost slowed for textiles (1.4 percent vs 1.7 percent); plastic (1.5 percent vs 1.9 percent); iron & steel (1.1 percent vs 1.4 percent); metal products (2 percent vs 2.4 percent)and beverage & foods (1.1 percent vs 1.3 percent). On a monthly basis, producer prices went down 0.5 percent, after a 0.1 percent decline in the prior month.