MNI BRIEF: Japan Aug CGPI Rises 2.7% Y/Y; Import Price Drops

Japan’s corporate goods price index rose 2.7% y/y in August, accelerating from July’s revised 2.5%, the Bank of Japan said Thursday, driven by beverages and foods (+5.0% vs +4.7%) and nonferrous metals (+6.2% vs +0.3%).

On a monthly basis, CGPI fell 0.2% in August after a 0.3% gain in July, the first decline in two months.

Import prices dropped 3.9% y/y in yen terms, extending their fall for a seventh straight month after July’s -10.3%, underscoring ongoing downward pressure.

Japanese automakers continued to slash U.S. export prices, with automobiles down 19.9% y/y on a yen basis and 20.5% on a contract currency basis, following July’s -24.4% and -18.4% respectively, pointing to squeezed profit margins.