Inflation rates are still rising strongly at the wholesale level.
The USD/JPY currency pair was little changed around the 161.36 level.
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The Producer Price Index (PPI) in Japan is also known as the Corporate Goods Price Index (CGPI).
- It is a measure of the average change over time in the selling prices that domestic producers receive for their output.
- It is calculated by the Bank of Japan.
Unlike the Consumer Price Index (CPI), which measures the change in prices that consumers see for a basket of goods and services, the Consumer Price Index (CGPI) focuses on the change in the prices of goods sold by businesses.
The producer price index reflects some of the cost pressures facing producers.
- It is based on a basket of goods representing the range of products produced within the Japanese economy, including items such as:
- Raw materials such as minerals and chemicals
- semi-finished goods
- and final products
- Different weights are assigned to each category within the index based on its contribution to the overall economy.
- It does not take into account improvements in the quality of goods and services over time, which may lead to overestimation of inflation.
- In addition, it only reflects the prices of domestically produced goods, leaving the impact of imported goods out of consideration.
The PPI can be used as an indicator of inflationary pressures in the economy:
- If producers face higher costs, they may pass these costs on to consumers, leading to higher consumer prices.
