Energy Imports Drive Japan’s PPI Up 3.9%

The nation’s producer price index rose 3.9 percent in August from a year before, up for the 17th consecutive month, the Bank of Japan said Wednesday.

The index, previously called the corporate goods price index, stood at 106.4 against 100 for the base year of 2010, the central bank said in a preliminary report.

The prices of energy-related goods such as oil and coal products, as well as electricity, gas and water rates were significantly higher.

Prices rose for 420 of the items on the index and declined for 311 items.

Month on month, the index dropped 0.2 percent, marking the first drop in six months.

“It is difficult to predict the outlook for prices amid concern over a drop in demand, mainly in the housing sector, after a surge ahead of the consumption tax hike [in April],” a BOJ official said.Speech

via Japan News

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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