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

Japan's corporate goods price index rose 4.0% y/y in February, slowing from January’s 4.2%, while import prices posted their first drop in three months, Hidden PDF showed on Wednesday.

Electric power, gas and water (+5.7% vs. +11.1) drove the index lower despite higher prices for agriculture, forestry and fishery products (+39.4% vs. 37.6%.).

The CGPI was unchanged m/m in February after rising 0.3% in January.

On a yen basis, import price fell 0.7% y/y in February for the first drop in three months following January’s 2.3%, indicating upward pressure from import goods on prices is slowing. 

The number of retail price hikes in February fell from a year earlier but firms are transferring higher costs to retail prices for the coming months.

BOJ officials are focused on whether wage hikes expected in or after April will cause retail prices to rise. (See MNI POLICY: BOJ Sees Steady Wage Hikes Despite Tariff Concerns)