Japan Producer Prices Rise the Most in Near 3 Years

Japan’s producer prices rose 4.9% yoy in April 2026, accelerating from an upwardly revised 2.9% increase in the prior month and exceeding market estimates of 3%. This was the fastest annual growth since May 2023, amid intense cost pressures following a spike in energy costs linked to supply chain disruptions from the war in Iran. Main upward pressure came from transport equipment (1.6% vs 1.4% in March), drinks and foods (4.1% vs 4.3%), chemicals (9.2% vs 0.8%), petroleum & coal (5.3% vs -7.1%), electrical machinery (3.8% vs 2.9%), production machinery (3.8% vs 4.2%), metal products (1.0% vs 0.6%), electronic components (2.9% vs 2.6%), and information and communications (5.8% vs 6.5%). At the same time, textile prices rebounded (0.7% vs -0.5%), while the cost of iron & steel fell more slowly (-1.9% vs 4.9%). On a monthly basis, producer prices increased 2.3%, picking up from a 1.0% gain in March and marking the strongest monthly rise since April 2014.

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.