Wednesday, June 10, 2026
0850 JST (2350 GMT/1950 EDT Tuesday, June 9) The Bank of Japan releases the May corporate goods price index.
Mace News median: CGPI +5.6% y/y (range: +5.4% to +6.2%) vs. Apr +4.9%; +0.7% m/m (range: +0.4% to +1.2%) vs. Apr +2.3%
By Chikafumi Hodo
TOKYO (MaceNews) – Japan’s producer inflation, measured by the corporate goods price index (CGPI), is expected to top 5% on the year in May, accelerating at the fastest pace in three years.
The CGPI is seen to have picked up momentum as ongoing geopolitical tensions in the Middle East continue to push prices of oil products and other raw materials, with the impact spreading to oil-derived products such as chemicals and adding further upward pressure on producer prices in the resource-poor country.
Coupled with the weakness of the yen, which is pushing up import costs, the CGPI is expected to rise 5.6% on the year in May, the highest since April 2023 when it hit 6.1%. The index surged unexpectedly to 4.9% in April, outpacing the market forecast of 3.2%.
On a month-on-month basis, the CGPI is expected to rise for the third straight month, rising 0.7% in May after jumping 2.3% in April, when price increases in oil products, chemical products, utilities, non-ferrous metals, as well as food and beverages led the gains.
This trend is seen continuing in May and spreading more broadly amid surging costs for oil products, including naphtha, and a range of chemical products used in the construction industry and other sectors. Persistent concerns over supply shortages stemming from tensions in the Middle East are forcing trading firms and wholesalers to pay higher prices to secure materials for customers.
Non-ferrous metals prices also continued to rise broadly, with international copper prices climbing further amid persistent supply concerns, while aluminum prices rose due to uncertainty surrounding the Middle East situation.
The base effects from food prices continued to fade, while domestic gasoline prices were restrained by government subsidies, but broader inflationary pressure has been intensifying and appears to have pushed up CGPI prices sharply over the last two months.