Tokyo, Japan – The Research and Statistics Department has released the preliminary figures for Japan’s Monthly Report on the Corporate Goods Price Index, revealing a combination of upward and downward trends in key indices for April 2023. These figures provide crucial insights into the performance of producer, export, and import prices, reflecting the dynamics of Japan’s economy.
The Producer Price Index, which measures the prices of goods at the producer level, rose by 0.2 percent compared to the previous month. This increase suggests a moderate uptick in prices, potentially influencing consumer prices in the near future. Notably, the rise in the Producer Price Index was driven by several factors, including electricity, water for industrial users, petroleum and coal products, transportation equipment, electrical machinery and equipment, and production machinery.
Similarly, the Export Price Index experienced a 0.2 percent increase on a contract currency basis. This rise indicates positive developments in the prices of exported goods, possibly driven by factors such as growing global demand for Japanese products and potential shifts in exchange rates. Key contributing commodities to the increase in the Export Price Index included metals and related products, general-purpose, production and business-oriented machinery, transportation equipment, and electric and electronic products.
However, the Import Price Index witnessed a notable decline of 2.0 percent from the previous month on a contract currency basis. This decline suggests lower costs for imported goods and materials, potentially benefiting domestic businesses that rely on imported inputs. The decrease in the Import Price Index can be attributed to factors such as lower prices for petroleum, coal, and natural gas, as well as declines in electric and electronic products.
When considering the year-on-year changes, the Corporate Goods Price Index displayed significant fluctuations. Compared to the corresponding period in the previous year, the Producer Price Index increased by 5.8 percent, indicating inflationary pressures in the producer sector. The Export Price Index recorded a 1.8 percent rise, reflecting favorable conditions for Japanese exporters in international markets. However, the Import Price Index faced a substantial decline of 6.5 percent, primarily due to lower prices for petroleum, coal, and natural gas, as well as reduced costs of electric and electronic products.
The Monthly Report on the Corporate Goods Price Index provides valuable insights into the current state of Japan’s economy. The Research and Statistics Department emphasizes the provisional nature of these figures, which are subject to revision. The department will continue to analyze the data and provide updated information to support policymakers, businesses, and analysts in making informed decisions.
It is important to note that the data released in the Monthly Report contributes to a comprehensive understanding of Japan’s economic landscape and helps identify trends and potential challenges. The Research and Statistics Department remains committed to monitoring these indices and providing timely and accurate information to support the country’s economic development.