The Corporate Goods Price Index for October rose by 0.8% compared to the same month last year.
32 Consecutive Months of Price Rises, Yet Easing Cost Pressures Cause 10-Month Contraction in Positive Margin; Food and Beverage Soar by 4.9% Amidst Surging Material and Fuel Prices
Source: JIJI TSUSHIN 13th Nov 2023
On the 13th, the Bank of Japan announced that the preliminary value of the Domestic Corporate Goods Price Index for October was 119.1 (base year 2020, average = 100), showing a 0.8% increase compared to the same month of the previous year. Although the increase has continued for 32 consecutive months, the transfer of cost pressures due to factors such as soaring raw material prices has eased, leading to a contraction in the positive margin for the 10th consecutive month. This marks the first time in 2 years and 8 months, since February 2021 (a 0.9% decline year-on-year), that the index has fallen below 1%.
The Corporate Goods Price Index reflects the prices of goods traded between companies. Among the 515 items surveyed, prices increased for 405 items. The expansion of government subsidies for gasoline contributed to reducing the positive margin.
In specific sectors, due to the surge in prices of raw materials, materials, and fuel, food and beverage prices increased by 4.9%, transport equipment by 2.6%, and pulp, paper, and related products by 10.9%. On the other hand, the prices of petroleum and coal products remained subdued, with a rise of only 0.7%, influenced by the impact of gasoline subsidies.