MNI BRIEF: Japan April CGPI Rises 4.0% Y/Y; Import Price Drops

Japan’s Corporate Goods Price Index (CGPI) rose 4.0% year-on-year in April, slowing from a revised 4.3% increase in March, according to data released by the Bank of Japan on Wednesday. 

Import prices, measured in yen, fell 2.9% year-on-year – marking the third consecutive monthly decline following a 1.5% drop in March.

The CGPI rose 0.2% month-on-month in April, down from a 0.4% gain in March. 

The slower annual increase was largely driven by weaker growth in petroleum and coal product prices (+6.6% vs. +8.8% in March) and a deeper contraction in iron and steel prices (-4.2% vs. -2.5%).

Retail prices were also raised in April, as many firms implemented planned price revisions, including in services. Additional price hikes are expected in or after April, which will further erode household purchasing power.

Bank of Japan officials remain particularly focused on the trajectory of services prices and the outlook for private consumption, which continues to show limited momentum.