Japan’s wholesale prices accelerate on upbeat commodity costs
Japan saw an increase in its wholesale prices, marking the first annualized jump in more than a year in March. Data released on Monday indicated that upbeat commodities reduced corporate margins, underscoring some inflationary pressures in the world’s third-largest economy.
The corporate goods price index (CGPI) recorded a 1.0% jump in March from a year ago. The figure from the Bank of Japan showed the first jump the index had recorded in 13 months. More so, the increase came as the sharpest pace of acceleration, completely reversing from a 0.6% drop seen in February.
The strong reading could be owed to soaring prices of non-ferrous metals, indicating that a rebound in commodities sent costs upward. While robust exports supported the country’s economy, inflationary risks are expected to press milder as slow vaccine rollouts weighed on domestic consumption.