Japan wholesale inflation likely hit 13-year high in Sept on rising commodity costs

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TOKYO, Oct 8 (Businesshala) – Japan’s wholesale prices are expected to hit a 13-year high in September, fueled by higher commodity prices, while machinery orders from firms are expected to rise for a second straight month in August , a Businesshala poll showed. Friday.

According to a survey of 17 economists, the Corporate Goods Price Index (CGPI), which tracks the prices that companies charge each other for their goods, rose 5.9% in September from a year earlier. This would be its highest annual value gain since September 2008. The index rose 5.5% year-on-year in August.

On a monthly basis, Japan’s wholesale prices are likely to rise 0.3% in September after being flat last month, the survey showed.

“Commodity inflation will affect the prices of petroleum products, chemicals, steel and other metals, resulting in increased wholesale inflation”, said Shunpei Fujita, an economist at Mitsubishi UFJ Research and Consulting.

“But as commodity price growth slows, corporate commodity inflation in Japan will gradually calm down.”

Commodity prices have risen recently amid concerns over energy supply, raising concerns about global inflation. But with Japan’s main inflation gauge still well below its target of 0.0% in August, the Bank of Japan expects to stick to a massive monetary stimulus for the foreseeable future.

The Bank of Japan will release CGPI data at 8:50 a.m. on Tuesday (at 2350 GMT on Monday).

On Wednesday, the government is going to release the Core Machinery Order data.

Core machinery orders are expected to grow 1.7% in August compared to the previous month, according to a Businesshala poll, after rising 0.9% in July.

Orders are likely to rise amid solid capital expenditure among companies preparing to reopen the economy after the government lifts emergency restrictions in late September.

Japan’s economic recovery has been led by strong demand for its exports, which offset weakness in COVID-hit consumption. But the manufacturing sector is now facing renewed pressure from supply chain disruptions.

Industrial production fell for a second straight month in August as the COVID-19 outbreak elsewhere in Asia hit hard for carmakers, already grappling with global chip shortages, to source parts. for.

Reporting by Kantaro Komiya; Editing by Ana Nicolasi da Costa

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