Japan’s wholesale prices rose 2.5 percent in October from a year earlier for the seventh straight month of increase and at its fastest pace in five years, pushed up by a weaker yen and rising prices of building materials amid robust construction demand, the Bank of Japan said Wednesday.
The index of corporate goods prices stood at 102.5 against the 2010 base of 100, the central bank said in a preliminary report. The year-on-year rise of 2.5 percent, which followed a revised 2.2 percent gain in September, was the highest since October 2008, according to the BOJ.
The increase in wholesale prices in October was prompted by lumber and wood product prices, which surged 13.6 percent amid brisk demand for redevelopment in the Tokyo metropolitan area and condominium construction, a BOJ official said.
Other items contributing to the gain include prices of petroleum and coal products, which rose 12.7 percent, amid higher market prices and a weaker yen. Prices of electric power, gas and water grew 11.8 percent.
Steel prices climbed 3.5 percent, as automakers factored rising material prices into product prices backed by favorable demand, the official said.
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