Japan’s December wholesale inflation appears to remain at record highs: polls


Tokyo — Japan’s wholesale inflation in December is expected to remain close to its recent peak as companies raise prices to offset rising raw material costs, a Reuters study showed Friday. ..

According to a survey of 17 economists, the company’s commodity price index (CGPI) in December is likely to have risen 8.8% year-on-year.

This follows a record increase of 9.0% year-on-year in November, the fastest pace since equivalent data became available in 1981.

According to polls, the wholesale price index in December is expected to slow slightly from 0.6% month-on-month to rise 0.3%.

Mr. Nanbu, Chief Economist of the Norinchukin Research Institute, said, “Import (cost) inflation is clear because the exchange rate in December was slightly stronger than in November and the rise in crude oil prices stopped. I took a break. “

“Nevertheless, there is a continuing tendency in the country to pass on higher costs to the price of the final good.”

The combination of yen depreciation and global commodity inflation has led to a gradual rise in consumer prices in Japan, but at a slower pace than wholesale prices. The Bank of Japan (BOJ) benchmark, which is the core consumer price index, rose 0.5% year-on-year in November, hitting a high for nearly two years.

However, the central bank did not make any changes to its ultra-easy policy in its December interest rate review, except for a partial reduction in its pandemic financing program, as inflation remained below its target of 2%.

The Bank of Japan plans to release CGPI data on January 14, 8:50 am (Greenwich Mean Time, January 13, 2350).

According to other data next week, Japan’s current account surplus was 585 billion yen ($ 5.05 billion) in November as record imports swelled due to soaring fuel prices, reaching 1.18 trillion last month. It shrank from the surplus of the circle. deficit.

The government will announce its current account balance at 8:50 am on January 12, 2350 GMT.

($ 1 = 115.8800 yen)

Reuters

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