Home/Forex News Round Up/JPY

Japan’s Wholesale Prices Fell in November

Share Print 0

Japan’s wholesale prices, excluding the impact of a consumption tax increase, declined for the first time in 20 months in November with a 0.2 percent fall from a year earlier, the Bank of Japan said Wednesday.

Lower prices of chemical products stemming from sluggish demand in Asia, falling petroleum and coal product prices amid the downturn in the oil market and a drop in rice prices led to the first drop since March 2013, a BOJ official said.

The index of corporate goods prices, excluding the effect of the consumption tax hike in April to 8 percent from 5 percent, stood at 102.3 in the month against the 2010 base of 100, the central bank said in a preliminary report.

Price trend is a key indicator for Prime Minister Shinzo Abe’s bid to move Japan’s economy out of its long deflationary malaise.

Including the tax impact, the wholesale prices rose 2.7 percent in the month from a year earlier for the 20th straight month of increase, driven by higher prices of iron and steel, metal products and nonferrous metals, the BOJ said.

The pace of increase was slower than a 2.9 percent rise in October and 3.6 percent growth in September, reflecting the recent downturn in the oil market.

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

@alfonso_forex

Back to Top