Japan Producer Prices Rise the Most in Near 3 Years

Japan’s producer prices rose 6.8% year-on-year in September 2026, slowing from August’s pace and market expectations of 7.6% and marking the weakest growth since May. The moderation suggests easing upstream cost pressures, although producer inflation remained elevated. Prices moderated for transport equipment (2.3% vs 2.5% in August), drinks and foods (4.2% vs 4.3%), petroleum & coal (11.5% vs 14.7%), production machinery (4.3% vs 4.5%), and textiles (1.4% vs 2.2%). Meanwhile, costs accelerated for chemicals (13.3% vs 13.0%), iron & steel (3.2% vs 2.7%), electrical machinery (5.1% vs 4.9%), metal products (5.1% vs 3.8%), electronic components (4.9% vs 4.4%), and information and communications (15.3% vs 14.8%).On a monthly basis, producer prices fell 0.3%, matching the revised decline in August and marking a second consecutive monthly contraction. The result also defied market expectations for a 0.5% increase.

Japan’s producer prices rose 7.6% year-on-year in August 2026, following an upwardly revised 7.7% increase in the prior month, which had been the fastest pace since February 2023. The latest reading was above market expectations of 7.4%, indicating commodity and energy cost pressures. Prices continued to grow for all components, including transport equipment (2.4% vs 2.6% in July), drinks and foods (4.3% vs 4.0%), chemicals (13.9% vs 13.8%), petroleum & coal (14.7% vs 17.6%), iron & steel (2.4% vs 2.1%), electrical machinery (4.1% vs 4.9%), production machinery (3.9% vs 3.4%), metal products (3.5% vs 2.0%), electronic components (3.3% vs 3.4%), and information and communications (19.5% vs 18.8%), and textile (2.2% vs 1.8%). On a monthly basis, producer prices fell 0.2%, reversing an upwardly revised 0.4% gain in July and marking the first monthly decline in a year.

Japan’s producer prices rose 7.2% year-on-year in July 2026, easing slightly from a marginally revised 7.3% increase in the prior month, which had been the fastest pace in more than three years. The latest reading came in slightly below market expectations of 7.4%, suggesting that commodity and energy cost pressures were somewhat softer than anticipated. Prices continued to grow for all components, including transport equipment (2.6% vs 2.3% in June), drinks and foods (4.0% vs 4.2%), chemicals (12.9% vs 15.1%), petroleum & coal (17.5% vs 22.8%), iron & steel (1.7% vs 0.3%), electrical machinery (4.6% vs 3.9%), production machinery (2.5% vs 1.8%), metal products (1.5% vs 1.3%), electronic components (3.3% vs 3.5%), and information and communications (17.3% vs 17.5%), and textile (1.1% vs 1.4%). On a monthly basis, producer prices edged up 0.1%, slowing sharply from an upwardly revised 0.5% gain in June and marking the weakest monthly gain in five months.