Japan’s producer prices surged by 6.3% year-over-year in August 2021, beating the market consensus of 5.9% after an upwardly revised 5.8% growth a month earlier.
- The prices that Japanese firms charge each other for services increased 0.9% in September from a year earlier — a sign inflationary pressure is building on global supply constraints.
- The increase in the services producer price index was below a 1.0% gain posted in August.
- The key driver behind the increase in prices in September was transportation fees, indicating that surging global demand and supply constraints are hampering corporate profits.
- The cost of ocean freight transportation rose by 34.9% in September from a year earlier, the biggest increase since 2008.
At the same time, there was a recovery in both the cost of electrical machinery and general machinery, with prices for transportation equipment and information falling.
JPY USD down -0.21%, Nikkei up +1.77%Source: Bank of Japan