Japanese Wholesale Prices Rise 4.1 Percent in April

Japan’s wholesale prices rose 4.1 percent in April from a year earlier for the 13th straight monthly increase, boosted by the effects of the April 1 consumption tax hike, the Bank of Japan said Wednesday.

The index of corporate goods prices stood at 105.7 against the 2010 base of 100, the central bank said in a preliminary report. Excluding the impact of the tax hike, prices rose 1.4 percent from a year earlier, compared with a 1.7 percent increase in March.

“Corporate prices were strongly influenced by the effects of the consumption tax hike,” a BOJ official said. Excluding the impact of the tax hike, however, the year-on-year price gain narrowed due to the diminishing effects of the weakening yen and rising energy prices, he said.

“As seen in prices of chemical and other products, market prices have been falling because of the Chinese economy’s uncertain prospects,” the official added.

In April, prices of iron and steel expanded 7.3 percent from a year earlier amid increasing tensions in Ukraine and concerns about economic sanctions against Russia, the official said.

Prices of electric power, gas and water surged 12.5 percent, reflecting the tax increase and rising electricity prices for industrial use.

via Mainichi

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza