Description
The Japan Producer Price Index (PPI) is released by the Bank of Japan (BOJ) as part of Corporate Goods Price Index (CGPI). It measures the price changes of goods produced and traded domestically, excluding exports. The PPI is a key indicator for assessing inflationary pressures, corporate profitability, and the overall economic health of Japan.
An increase in the PPI typically indicates rising production costs, which may be driven by factors such as higher raw material prices, yen depreciation, or increased demand. Conversely, a decrease in the index may suggest a reduction in production costs, possibly due to yen appreciation, weakening demand, or other factors lowering production expenses. Since production costs often impact consumer prices, the PPI can be used to forecast future trends in the Consumer Price Index (CPI).
This data is released monthly, reflecting changes in domestic producer prices for goods and services in Japan during the previous month.