Wholesale prices in Japan reach their highest level in 40 years

Tokyo, November 11 Wholesale prices in Japan jumped 8% in October year-on-year, the largest increase since January 1981, amid rising crude oil prices and a weaker yen, said Thursday the country’s central bank.

The prices of goods traded between firms rose for the eighth consecutive month, the latest result being the largest increase since an 8.1% increase recorded four decades ago, the Xinhua News Agency said citing the Bank. of Japan (BOJ).

Prices for petroleum and coal products jumped 44.5%, reflecting higher commodity prices.

While many restrictions related to Covid-19 have been lifted, demand for energy and raw materials has been boosted by the recovery in economies.

According to BOJ data, lumber and lumber prices soared 57%, iron and steel prices rose 21.8%, and non-ferrous metal prices jumped 31.4% .

Electricity, gas and water bills increased by 10.9%.

Electricity prices normally follow rising oil prices with a lag.

Import prices also registered a record increase of 38 percent, and export prices increased by 13.7 percent. Both figures are in yen.

Despite the surge in wholesale prices, the BOJ maintained its monetary easing to meet its 2% inflation target, as it felt that inflationary pressure was not as high as in other advanced economies.

Consumer staples, a key measure of inflation, were only modest compared to wholesale prices as Japanese companies were reluctant to pass the higher costs on to consumers to protect demand after the pandemic of Covid-19.

Disclaimer: This article was posted automatically from an agency feed without any text changes and has not been reviewed by an editor

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