Thursday, August 13, 2026
0850 JST (2350 GMT/1950 EDT Wednesday, August 12) The Bank of Japan releases the July corporate goods price index.
Mace News median: CGPI +7.5% y/y (range: +6.6% to +7.5%) vs. June +7.1%; +0.6% m/m (range: -0.5% to +0.6%) vs. June +0.4%
By Chikafumi Hodo
TOKYO (MaceNews) – Japan’s annual producer inflation, as measured by the corporate goods price index (CGPI), is expected to accelerate in July to its fastest pace since February 2023. The CGPI is forecast to rise for a fifth consecutive month from a year earlier, driven by continued increases in oil, metals and other commodity prices.
Ongoing geopolitical tensions in the Middle East have kept oil and commodity prices elevated while also boosting safe-haven demand for the dollar, leaving it about 7% stronger against the yen than a year earlier. The resulting depreciation of the Japanese currency has pushed up import costs in resource-poor Japan. These trends have intensified since the U.S. and Israel launched a joint military strike on Iran in late February.
In addition, businesses have continued to pass on higher labor costs to customers, adding to upward pressure on producer prices.
The CGPI is expected to rise 7.5% year on year in July—the fastest pace since February 2023, when it increased 8.4%—following a 7.1% gain in June. The largest contributors to the increase in June were non-ferrous metals, which rose 39.2% from a year earlier, petroleum and coal products (22.8%), and chemical products (14.4%).
On a month-on-month basis, producer prices are expected to rise 0.6% in July. Except for February, when the index was unchanged, the monthly CGPI has posted positive growth every month since September 2025. June’s monthly increase was driven mainly by petroleum and coal products, including heavy fuel oil and kerosene, as well as utilities and plastic products. Declines in agricultural products, including rice and pork, partially offset those gains.