TOKYO, Reuters – Japan’s wholesale price likely reached a thirteen-year high in September. This was due to lofty commodity prices. Meanwhile, machinery orders for Japanese firms are forecast to rise for the second consecutive month, according to Reuters poll.

According to a survey of 17 economists, the corporate goods price index, which measures how companies pay each other for goods, rose by 5.9% in September compared with a year earlier. It would represent the largest annual price rise since September 2008. The August index saw a 5.5% increase in year-over-year growth.

The poll revealed that Japan’s wholesale price growth in September was 0.3%, compared to 0.3% the month before.

Shunpei Fujita (NYSE: Research and Consulting) said that commodity inflation would affect the prices for petroleum products, chemicals, steel, and other metals. This will result in a greater growth in wholesale inflation.

However, Japan’s corporate goods inflation will slow down as commodity prices fall.

Recent energy shortage worries have fueled a rise in commodity prices, raising concerns about inflation. However, Japan’s main inflation gauge is still below the target of 0.0% at August. The Bank of Japan expects to continue its massive monetary stimulus in the near future.

The Bank of Japan (Monday, 2350 GMT) will release the CGPI information on Tuesday at 8.50 a.m.

Data on core machinery orders will be released by the government Wednesday.

According to Reuters, core machinery orders will have risen 1.7% by August compared to July, following 0.9% growth.

The solid capital investment by businesses preparing to reopen the economy following the lifting of state of emergency measures at September’s close, is likely to lead orders rising.

Japan’s economy has seen a strong demand for exports that offset the weakening COVID-hit consumption. This is what led to Japan’s recent economic recovery. However, supply chain disruptions are putting renewed pressure on the manufacturing sector.

In August, industrial output was down for the second month straight. COVID-19-related outbreaks throughout Asia closed factories, making it more difficult for carmakers who are already struggling to find parts.