Japan’s July wholesale inflation slows for seventh month
Sign up now: Get ST's newsletters delivered to your inbox
Government subsidies helped curb price hikes in July.
REUTERS
TOKYO - Japanese wholesale inflation slowed in July year on year, easing for a seventh straight month due to softer energy utility costs, central bank data showed on Thursday, a sign the pressures that drove up consumer prices are running their course.
The 3.6 per cent rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, compares with the median market forecast for a 3.5 per cent annual increase and follows a 4.3 per cent annual increase in June.
After peaking at 10.6 per cent in December, wholesale inflation has slowed for seven months in a row, the data showed.
The data underscores the Bank of Japan’s view that consumer inflation will slow in coming months as global commodity prices slide from 2022’s peak levels.
For July, government subsidies to mitigate the impact of the spike in household gas and electricity utility fees, which shaved 0.6 percentage point off the overall increase, helped curb price hikes, the data showed.
Yen-based import prices fell 14.1 per cent in July from a year earlier, falling for a fourth straight month, easing concerns about elevated import bills for companies reliant on raw material imports. REUTERS
