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

Japan’s corporate goods price index rose 2.7% y/y in November, unchanged from October’s revised 2.7%, while import prices fell for a 10th straight month, Bank of Japan data showed Wednesday. 

The index was lifted by nonferrous metals (+14.9% vs. +11.8%), while electric power, gas and water (-1.0% vs. -0.6%) dragged it down. CGPI rose 0.3% m/m, the third consecutive gain after a revised +0.5% in October.

Import prices on a yen basis dropped 1.8% y/y after -1.7% in October, underscoring the limited pass-through of yen weakness. 

Automobile export prices to the U.S. fell 13.4% on a yen basis and 14.3% on a contract currency basis, deeper than October’s -12.0% and -13.0%, indicating Japanese carmakers continued cutting export prices and squeezing margins. However, profits remain elevated overall, supported by the weak yen.