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Japan PPI accelerates in June as fuel costs surge
Japan’s June PPI rose 0.4% month-on-month and 7.4% year-on-year, driven by a 22.8% jump in fuel prices and a weaker yen lifting import costs.
Japan producer inflation accelerated in June, coming in above expectations and pointing to sustained upstream cost pressures in the country’s industries, Action Forex reports. The Japan PPI increased 0.4% month-on-month and 7.4% year-on-year, versus forecasts of 0.3% and 6.8%, respectively.
The report said annual producer inflation quickened from 6.6% in May to its fastest pace since March 2023. Fuel prices led the move, rising 22.8% year-on-year, while non-ferrous metal prices climbed 39.2%, reflecting strong demand tied to AI-related raw materials.
Action Forex also highlighted the role of the yen. Japan’s yen-based import price index accelerated to a 29.7% year-on-year increase in June, up from a revised 26.1% in May, underscoring higher costs for imported inputs.
While producer inflation does not automatically feed through to consumer prices, the latest data reinforce the Bank of Japan’s view that price pressures remain elevated, the outlet said. The focus now shifts to how much of the higher input costs firms can pass on to households in the months ahead.