AI Data Insight
Japan's latest PPI month-over-month growth rate for Q3 2026 dropped to -0.3%, widening the decline from the previous -0.2%. Not only did it show negative growth for two consecutive months, but it also fell short of the market's consensus expectation of an increase. This pullback is mainly attributed to the stronger yen and cooling international oil prices, which significantly reduced the import pressure on agricultural products and energy. However, inflation in core industrial products remains sticky, and future uncertainty in the Middle East will continue to influence the Bank of Japan's interest rate decisions.