Producer Price Inflation in Japan Rises 9.3% in November... 21 Consecutive Months of Increase

[Asia Economy Reporter Jeong Hyunjin] Japan's producer price inflation exceeded 9% in November due to rising energy prices, continuing an upward trend for 21 consecutive months.

[Image source=Reuters Yonhap News]

According to Nihon Keizai Shimbun and others, the Bank of Japan (BOJ) announced on the 12th that the November Producer Price Index (PPI) rose 9.3% year-on-year and 0.6% month-on-month.

Japan's PPI inflation rate has consistently exceeded 9% since January this year, peaking at 10.3% in September. The October inflation rate was 9.4%. The November PPI inflation rate surpassed market expectations of 8.9%.

The main driver behind Japan's November PPI increase was energy, including electricity and city gas. NHK broadcast analyzed, "Prices of many items are rising due to increases in energy and raw material prices such as crude oil."

The November import price index (in yen terms) rose 28.2% year-on-year but fell 5.1% month-on-month.

As producer prices continue to surge, it is expected that companies will reflect increased costs in retail prices, thereby increasing the burden on households.