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

Japan’s corporate goods price index (CGPI) rose 2.7% y/y in September, unchanged from August’s unrevised pace, while import prices declined for an eighth consecutive month, Bank of Japan data showed Friday.

The index was supported by higher prices for nonferrous metals (+9.6% vs. +6.2% in August) but was weighed down by a smaller increase in agriculture, forestry and fishery products (+30.5% vs. +41.0%).

On a monthly basis, the CGPI rose 0.3% in September after falling 0.2% in August, marking the first increase in two months.

Import prices in yen terms fell 0.8% y/y in September following a 3.9% decline in August, indicating that downward pressure from import costs has eased.

Export prices for automobiles to the U.S. fell 16.3% on a yen basis and 18.8% on a contract currency basis, compared with August’s declines of 19.9% and 20.5%, respectively, suggesting that Japanese carmakers continue to lower export prices, squeezing profits.

However, the recent depreciation of the yen against the dollar is expected to support exporters’ earnings. (See MNI POLICY: Yen Fall Unlikely To Drive Swift Japanese Action)