Wholesale prices in Japan extend sustained gains as weak yen inflates import costs

Band Leika Kihara

TOKYO, July 12 (Reuters)Japan’s yen-based import prices jumped at a record pace in June, data showed on Tuesday, keeping wholesale inflation elevated as the currency’s sharp fall continues to weigh on a fragile economic recovery by increasing raw material costs.

The data highlights the challenge Prime Minister Fumio Kishida faces in cushioning the economic blow from the rising cost of living, which emerges as a political priority after his victory in Sunday’s upper house elections.

The Business Goods Price Index (CGPI), which measures the price of goods that businesses charge themselves, rose 9.2% in June from a year earlier, marking the 16th consecutive month of increases, according to Bank of Japan data.

The rise, which beat median market expectations for an 8.8% gain, slowed from a revised 9.3% rise in May and a record 9.9% rise in April.

Prices of yen-based imported goods jumped 46.3% in June from a year earlier, marking the fastest gain on record, a sign that the falling currency was already inflating the costs of importing goods. raw materials.

(Reporting by Leika Kihara; Editing by Christopher Cushing and Sam Holmes)

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