Japan’s PPI increased 0.3% MoM and 4.2% YoY in January, in line with expectations and up from 3.9% YoY in December.

• The annual rate is at the highest since May 2023.
• The Export Price Index (yen basis) grew 1.3% MoM and 4.5% YoY, and the Import Price Index grew 1.5% MoM and 2.3% YoY. Both were affected by a 1.8% MoM increase in the FX rate, signaling yen depreciation in January.
• Petroleum and coal productions accounted for most of the monthly change, contributing 0.18 ppts. Beverages & foods (0.07 ppts) and nonferrous metals (0.06 ppts) were the next largest.