ReturnJapan's Corporate Goods Price Index (CGPI) rose 4.2 percent year-on-year in March, exceeding the median market forecast of a 3.9-percent rise, preliminary data by the Bank of Japan (BOJ) showed on Thursday.
The index measuring producer prices, based on 2020 as the base year (100), reached 126 as a continued surge in agricultural products, including rice, drove up the corporate price growth.
The CGPI reflects price trends for goods traded between companies and influences both the Corporate Services Price Index and the Consumer Price Index (CPI).
Rice prices have remained high, while a drop in egg supply due to avian influenza has caused egg prices to spike, the data showed.
In addition, petroleum and coal product prices rose by 8.6 percent as the government reduced gasoline subsidies. Food and beverage prices also climbed by 3.1 percent, reflecting manufacturers' efforts to pass on higher costs of raw materials and packaging to their buyers.
For the entire 2024 fiscal year, producer prices increased by 3.3 percent compared to the previous year, partly due to rising international prices of non-ferrous metals. Of the 515 items surveyed, 387 showed price increases while 106 recorded declines.
The latest data suggest continued inflationary pressure in Japan's production sector, which may eventually feed through to consumer prices, affecting household budgets.
