Rise in producer prices accelerates in Japan

Japan’s producer-price inflation accelerated for six months in a row, rising in July. The corporate commodity price index (CGPI), which measures the price Japanese firms charge each other for goods and services, rose 3.0 percent from a year earlier, the Bank of Japan (BOJ) reported on Tuesday. Prices had risen 2.9 percent in June. A 3 percent increase was expected for July. Reflecting the weaker yen’s impact on inflation, the yen-denominated cost of imported materials rose 10.8 percent. Input costs for electricity, gas and water rose 6.7 percent from a year earlier. The yen’s decline this year has added to the cost of importing raw materials, food and fuel, adding to upward pressure on inflation. Bank of Japan Governor Kazuo Ueda said after the bank raised its benchmark interest rate on July 31 that authorities would continue to raise interest rates if prices and growth outlooks materialize.