Japan Wholesale Prices Rise 7.2 Percent in August
September 10th, 2008Via: AP:
Japan’s corporate goods prices rose 7.2 percent in August, driven up by the soaring costs of energy and raw materials, the Bank of Japan said Wednesday.
In data released separately Wednesday, Japan’s current account surplus — the widest barometer of its trade with the world — fell 17.3 percent in July from a year earlier to 1.53 trillion yen ($14.3 billion) as higher oil prices pushed up the import bill.
Japan’s index for domestic corporate goods prices stood at 112.1, a result largely in line with market forecasts.
Its pace skirted a revised 7.3 percent increase in July, which marked the steepest climb since an 8.1 percent gain in January 1981. Then, as now, high oil prices were driving inflation.
Despite higher wholesale costs, companies have yet to fully pass on those increases to consumers, suggesting that consumer inflation may be headed higher. In July, the core consumer prices index excluding fresh food prices was up 2.4 percent.
Behind the corporate goods index were surging prices of petroleum and coal products, which were up 43.3 percent after a revised 44.3 percent increase in July. Iron and steel product prices climbed 28.6 percent after rising a revised 27.0 percent in July.
The corporate goods price index measures price developments of goods bought and sold by companies. The central bank uses 2005 as the base year for the index.
