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Japan’s May wholesale price rise slows as fuel spike moderates -Breaking


© Reuters. FILEPHOTO: A group of people runs with Tokyo’s commercial district behind them, Tokyo, Japan April 7, 2021. Picture taken April 7, 2021. REUTERS/Kim Kyung-Hoon

By Leika Kihara

TOKYO (Reuters). Japan’s wholesale price rose 9.1% in Japan in May compared with a year before. This was a slowdown from the earlier month’s rise due to the recent surge in fuel prices.

However, the import prices based on yen rose 43.3% to May in comparison with a year ago. This was an acceleration from the 42.2% increase in the previous month. It is a sign that the recent falls in the yen were driving up raw material costs.

The corporate goods price index (CGPI), which tracks the prices that companies charge one another, increased by a smaller amount than the 9.8% median market forecast.

This was in addition to the 9.8% increase seen in April according to Bank of Japan data.

Due to the conflict in Ukraine, global commodity inflation and the fall of the yen at two-decade lows has caused wholesale prices in Japan to rise. Retailers are now losing money.

Households are seeing the increased costs being passed on by businesses. The core consumer price index rose by 2.1% from one year ago in April. This was slower than Western economies’ pace, but still higher than the BOJ’s target of 2% for the first seven years.