MNI BRIEF: Japan June CGPI Rises 2.9% Y/Y; Import Price Drops

Japan’s corporate goods price index (CGPI) rose 2.9% y/y in June, easing from May’s revised 3.3%, data released by the Bank of Japan showed Thursday. 

The index fell 0.2% m/m, following a 0.1% decline in May, marking the second consecutive monthly drop.

The slowdown was driven by a sharp decline in petroleum and coal products (-4.6% vs. +0.8%) and a moderation in electric power, gas and water prices (+3.5% vs. +6.4%).

Import prices on a yen basis dropped 12.3% y/y in June, extending a five-month streak of declines after May’s 10.3% fall, highlighting continued deflationary pressure from trade.

However, BOJ officials are monitoring whether the recent depreciation of the yen could reverse this trend and push import prices higher again.