April data shows corporate goods prices rising at the fastest pace since May 2023, driven by surging import costs amid Iran-related supply concerns.
Japan’s corporate goods price index climbed 4.9% year-on-year in April, exceeding the 3.0% forecast and accelerating from a revised 2.9% in March. The rise marks the sharpest annual increase since May 2023, fueled by higher import costs linked to Middle East tensions.
The yen-based import price index surged 17.5% year-on-year, the steepest gain since December 2022, following an 8.0% rise in March. Naphtha prices jumped 83.2% month-on-month, while chemical goods prices rose 9.2%, the fastest pace since September 2022.
A Bank of Japan official cited uncertainty over the Iran conflict and the effective closure of the Strait of Hormuz as key drivers. The data may push the BOJ toward a June rate hike to curb inflationary pressures.