Japan's wholesale prices rise 2.5 pct on year in June

13:24, July 12, 2011      

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Japan's wholesale prices rose 2.5 percent in June from a year earlier, marking the ninth straight month of increase, the Bank of Japan (BOJ) said on Tuesday.

The 2.5 percent rise in the recording period follows a 2.4 percent increase logged in May and beat median market forecasts for a 2.4 percent annual increase.

However, the central bank noted that the index of corporate goods prices stood at 105.4 against the 2005 base of 100, as costs for energy and commodities eased marginally in the recording period.

On a month-on-month basis, the central bank reported the corporate good price index, a gauge of corporate charges for services and goods, dropped 0.1 percent in June, marking the second straight monthly fall and compares to median market forecasts for a 0.2 percent retraction.

The central bank also noted that overall final goods prices gained 0.7 percent in June from a year earlier, while domestic final goods prices, which loosely track the consumer price index, rose 0.9 percent in June from a year earlier.

"The recent easing in commodity prices pushed down wholesale prices slightly on a month-on-month basis. Although prices of commodities such as oil have calmed down, their impact on electricity prices will appear about six months later. So upward pressure on wholesale prices overall is expected to continue on a year-on-year basis until around September," said Yasuyo Yamamoto, senior economist at Mizuho Research Institute, Tokyo.

"An easing in wholesale prices month-on-month is favorable for the Bank of Japan, as it would ease pressure on corporate profits. But it is unlikely to alter the BOJ's easy monetary policy in the immediate future," he said.

Source:Xinhua
 
 
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