Japan wholesale prices rose 1.0pct in March, logging first growth in 13 months

13-Apr-2021 Intellasia | JapanTimes | 5:02 AM Print This Post

Wholesale prices in the nation rose 1.0 percent from a year earlier in March to show the first increase in 13 months, reflecting higher crude oil prices and a global economic recovery from the COVID-19 pandemic, the Bank of Japan said Monday.

The prices of goods traded between companies last showed an on-year rise in February 2020, but remained below the central bank’s 2 percent inflation target. The latest increase followed a 0.6 percent decline in February.

By item, prices for oil and coal products gained 9.8 percent following a revised 6.0 percent fall in the previous month. Nonferrous metal prices jumped 28.7 percent due to strong demand in China, the central bank said. Prices for scrap metal surged 63.9%, pushed up by robust demand from overseas.

“A pickup in prices has been driven by recoveries in the US and Chinese economies, but demand in Japan remains weak,” said a BOJ official.

The rise in prices in March also reflected a plunge in crude oil prices a year earlier and the economic downturn around the world in the early stages of the pandemic.

“It is too early to say demand in Japan has returned to the level before the outset of the pandemic,” the BOJ official added.

Electricity, gas and water bills fell 10.2%. Import prices rose 5.6 percent from a year earlier while export prices climbed 5.5%, both in yen terms.

https://www.japantimes.co.jp/news/2021/04/12/business/japanese-economy-wholesale-prices/

 

Category: Japan

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