Japan Producer Prices Rise the Most in 4 Months

Japan’s producer prices rose 2.6% yoy in March 2026, quickening from a marginally revised 2.1% increase in the prior month and topping market estimates of 2.4%. This was the fastest annual growth since November, amid elevated cost pressures. Price growth accelerated for transport equipment (1.3% vs 1.2% in February), production machinery (4.1% vs 2.7%), and information and communications (3.0% vs 2.5%). At the same time, prices fell at a milder pace for chemicals (-0.4% vs -2.5%), iron & steel (-5.0% vs -5.5%), and petroleum & coal (-7.3% vs -11.7%). In contrast, inflation slowed for drinks and foods (4.3% vs 4.8%), other manufacturing (2.3% vs 2.5%), metal products (0.6% vs 1.1%), general-purpose machinery (2.4% vs 2.8%), non-ferrous metals (31.1% vs 32.6%), electrical machinery (2.6% vs 2.7%), and business-oriented machinery (2.6% vs 2.7%). Monthly, producer prices increased 0.8%, picking up from a 0.1% gain in February, marking the strongest monthly rise since November 2022.

Japan’s producer prices rose 2.0% yoy in February 2026, slowing from a 2.3% increase in the prior month and falling short of market consensus of 2.1%. This was the softest annual rise since May 2024, as cost eased for transport equipment (1.0% vs 1.2% in January), drinks and foods (4.6% vs 5.1%), production machinery (2.4% vs 3.3%), general-purpose machinery (2.8% vs 3.2%), non-ferrous metals (32.5% vs 33.0%), and information and communications (2.4% vs 3.6%). Prices stayed weak for chemicals (-2.5% vs -2.8%), iron & steel (-5.4% vs -5.5%), and petroleum & coal (-11.7% vs -12.9%), while plastic cost turned lower (-0.2% vs 0.3%). In contrast, inflation held steady for other manufacturing (at 2.3%) amid an acceleration in prices of electrical machinery (2.6% vs 2.4%), and business-oriented machinery (2.6% vs 2.2%). Also, cost of metal products rebounded (0.9% vs -0.2%). Monthly, producer prices edged down 0.1%, after a 2.0% gain in January, marking the first monthly drop in six months.

Japan’s producer prices rose 2.3% year-on-year in January 2026, slightly easing from a 2.4% increase in the previous month and matching market expectations. This marked the slowest annual rise since May 2024. Cost moderated for: drinks and foods (4.7% vs 4.8% in December), other manufacturing (2.2% vs 2.3%), production machinery (3.3% vs 3.9%), plastics (0.3% vs 0.5%), electrical machinery (2.5% vs 2.7%), and metal products (0.2% vs 0.3%). In addition, prices remained weak for chemicals (-3.2% vs -3.0%), iron and steel (-5.5% vs -6.7%), and petroleum and coal products (-12.9% vs -8.3%). By contrast, inflation held steady for transport equipment (at 1.2%), while accelerating for general-purpose machinery (3.3% vs 2.7%), non-ferrous metals (33.0% vs 22.0%), information and communications (3.6% vs 3.2%), and business-oriented machinery (3.0% vs 2.4%). On a monthly basis, producer inflation edged up to 0.2% from the softest pace in four months of 0.1% in December, in line with forecasts.