Commentary Directory

Japan PPI: August 2023

Jacob Hess
September 13, 2023

Japan PPI

9/13/2023 (August 2023)

3.2% YoY (0.3% MoM)


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Import Price Index -11.8% YoY (0.9% MoM)
Export Price Index 3.7% YoY (1.9% MoM)

Japan’s PPI grew 0.3% MoM and 3.2% YoY in August, down from 3.4% YoY. The monthly increase was the largest since April. Export prices jumped 1.9% MoM, the largest monthly increase since September 2022, and pushed the annual change to the highest since March 2023 at 3.7% YoY. The Import Price Index also increased, up 0.9% MoM, but the annual decline was still a sharp -11.8% YoY.

From Bank of Japan

Petroleum and coal product prices are the main cause of the rise of the PPI, contributing 0.35 ppts to the MoM headline figure and growing 5.2% MoM and 7.5% YoY. Just two months ago, this segment was negative at -2.6% YoY which means that rising energy costs are set to become a near-term force for inflation in Japan in Q3. The other product segments made small contributions as many saw little change on the month. Notable changes include a -22.1% YoY decline in lumber and wood products, and nonferrous metals and metals products increasing 6.7% YoY and 8.0% YoY respectively.