Corporate goods prices jumped again in May, signaling strengthening inflationary pressures rippling across domestic supply chains as the war in Iran drags on and keeps energy prices elevated.
The measure of input prices for Japanese firms rose 0.9% from a month earlier, and April¡¯s increase was revised higher, the Bank of Japan reported Wednesday. On an annual basis, prices climbed the most in three years ¡ª above most estimates in a Bloomberg survey of economists and also following an upward revision to the prior month.
¡°Higher import prices upstream are already feeding through to domestic producer prices,¡± said Masayuki Sato, an economist at NLI Research Institute. ¡°I think the pace of increase in producer prices is likely to accelerate going forward.¡±
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