Japan's Corporate Goods Prices Surge Near 3-Year High

The Bank of Japan's Corporate Goods Price Index (CGPI) rose 7.6% year-on-year in August, according to preliminary data released on the 11th. This increase is near its highest level in three and a half years.

The reading exceeded market consensus of 7.4% and narrowed slightly from July's 7.7%. On a month-on-month basis, the index fell 0.2%.

The persistently elevated energy costs and weak yen are driving price increases. Crude oil and natural gas prices have surged amid the prolonged war between the United States and Iran, pushing up procurement costs for imported goods. The yen-based Import Price Index rose 24.8% year-on-year.