Japan Producer Prices Rise Less than Estimated

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.

Japan’s producer prices rose 7.1% year-on-year in June 2026, accelerating from an upwardly revised 6.6% increase in the previous month and exceeding market expectations of a 6.8% gain. It marked the fastest annual increase since March 2023, as persistent cost pressures were fueled by higher energy prices following supply chain disruptions linked to the war in Iran. Main upward pressure came from rising prices of transport equipment (2.1% vs 2.2% in May), drinks and foods (4.0% vs 4.3%), chemicals (14.4% vs 14.3%), petroleum & coal (22.8% vs 13.7%), electrical machinery (3.4% vs 3.0%), production machinery (2.1% vs 3.4%), metal products (1.0% vs 1.9%), electronic components (2.7% vs 2.7%), and information and communications (14.5% vs 13.7%), and textile (1.3% vs 1.3%). Meanwhile, the cost of iron & steel fell more slowly (-0.4% vs -0.9%). On a monthly basis, producer prices grew 0.4%, easing from an upwardly revised 1.1% gain in May and marking the slowest monthly growth in four months.

Japan’s producer prices rose 6.3% yoy in May 2026, accelerating from an upwardly revised 5.3% increase in the prior month and topping market expectations of 5.5%. It was the fastest annual growth since March 2023, reflecting persistent cost pressures, particularly from higher energy prices amid supply chain disruptions stemming from the conflict involving Iran. Main upward pressure came from rising prices of transport equipment (2.0% vs 1.8% in April), drinks and foods (4.1% vs 4.1%), chemicals (13.4% vs 10.1%), petroleum & coal (13.8% vs 5.3%), electrical machinery (3.2% vs 4.1%), production machinery (3.4% vs 3.8%), metal products (1.6% vs 1.1%), electronic components (2.8% vs 3.0%), and information and communications (13.1% vs 12.4%), and textile (1.2% vs 0.7%). Meanwhile, the cost of iron & steel fell more slowly (-1.2% vs -1.9%). Monthly, producer prices increased 0.9%, easing from an upwardly revised 2.8% rise in April, which had been the strongest monthly gain since April 2014.