Monday, August 12, 2019 - 21:15

MNI DATA IMPACT: Japan July CGPI -0.6% Y/Y; Lowest Dec 2016

TOKYO (MNI) - Japan's corporate goods price index posted a second straight year-on-year drop in July, with the index falling to the lowest level since December 2016 when it was down 1.2% on year, data released by the Bank of Japan Tuesday showed.

June's -0.1% was the first year-on-year drop in 30 months.

A BOJ official said that the underlying trend of CGPI hasn't changed, although the index continues to be influenced by fluctuation of international commodity prices caused by the trade friction between the U.S. and China.

He added that weak consumer goods prices (-1.6% on year in July vs. -1.3% in June) included weak gasoline prices but corporate cautious stance of raising retail prices was also behind the weak CGPI.

The official didn't touch on the outlook for CGPI, or whether it is expected to continue falling on year.

On the month, the CGPI was unchanged in July, after falling 0.5% in June.

Japan's CGPI isn't directly linked to the consumer price index, but the July data will see BOJ economists monitor developments linking inflation rates and corporate price hikes.

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