AI Data Insight
Japan's domestic Corporate Goods Price Index (CGPI) month-over-month growth rate for Q3 (July) 2026 dropped to 0.1475%, significantly slowing from the previous value of 0.3706% and well below the market expectation of 0.6%. Although the monthly increase fell short of expectations, surging import prices driven by the depreciation of the yen and soaring energy prices are severely squeezing corporate profits. The market widely expects that under the pressure of cost pass-through, the Bank of Japan could initiate another rate hike as early as September.