The Bank of Japan announced on August 13 that the July corporate goods price index increased by 3.0 percent compared to the same month a year ago, marking the highest increase since August 2023.

The corporate goods price index shows fluctuations in the price of goods and services transacted between domestic companies.

It is considered a leading indicator of the consumer price index, which reflects the price movements of goods and services purchased by households.

The July corporate price index stood at a record high of 123.1, marking the eighth consecutive month to surpass the previous month’s index.

The central bank analyzes that the end of government subsidies has resulted in higher electricity and gas prices.

In addition, adverse weather conditions have driven up the costs of agricultural, forestry, and fishery products. Both factors contributed to the increase of prices in food and beverage items, thereby pushing up corporate prices.

The import price index, in yen terms, rose to 10.8 percent compared to the same month last year, up from 9.5 percent in June 2024.

The increase in import prices for coffee beans and cocoa beans is attributed to bad weather conditions in producing regions, while a weak yen pushed up import bills for crude oil and liquefied natural gas that went up internationally.