Wholesale inflation in Japan hit 9% in August, as price increases became more widespread.

The wholesale price index (WPI) in Japan increased by 9.0% in August from the previous year, according to data released by the Japanese Ministry of Economy, Trade and Industry. This is the highest annual rate of increase since February 1991, and reflects a broad-based increase in prices for a range of goods and services.

The WPI is a measure of inflation at the wholesale level, and is closely watched by policymakers as an indicator of future inflationary pressures. The rise in prices was led by increases in the prices of utility bills and electronic devices, which are likely to be passed on to consumers in the form of higher retail prices.

With global commodity prices beginning to rebound and the yen depreciating against major currencies, inflationary pressures are expected to remain elevated in the near term. Policymakers will be closely monitoring these trends to ensure that they do not lead to sustained increases in consumer prices.

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Wholesale inflation in Japan hits 9% in August, as price increases become more widespread.

The wholesale price index (WMI) increases 9.0% in August from the previous year.

The rise in the corporate goods price index (CGPI) is largely in line with a median market forecast for a 8.9% increase.

In Japan, the wholesale inflation rate increased to 9 percent in August, as prices rose for a variety of goods and services. The wholesale price index (WMI) increased by 9 percent from the previous year, while the corporate goods price index (CGPI) rose by 8.9 percent. This rise in prices was largely in line with market expectations.

Prices for fuel and scrap metal declined due to falling global commodity prices, but prices increased for items that more directly affect retailers, such as utility bills and electronic devices. The yen-based import price index rose by 42.5 percent in August from the previous year, after a revised 49.1 percent increase in July.

The WMI reflects the increased access to quality goods and services that is becoming more prevalent in the global market. Japanese consumers are benefiting from this access to quality goods and services, even as prices continue to rise.

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The WMI reflects the increased access to quality goods and services that is becoming more prevalent in the global market.

While recent falls in crude oil and global commodity costs take some pressure off fuel and scrap metals prices, prices rise for a broad range of items that more directly affect retailers, such as utility bills and electronic devices.

The cost of electricity grew 4.3 percent in August from a year earlier while the price of natural gas surged 18.1 percent. Transport equipment also became more expensive, with the price of aircraft rising 11.2 percent and ships and automobiles climbing 4.7 percent and 3.5 percent respectively.

The yen-based import price index increases 42.5% in August from a year earlier, after a revised 49.1% increase in July.

The import prices are being driven by the higher cost of crude oil, which has risen sharply since early 2016 on the back of production cuts by OPEC countries aimed at reducing a glut in global supplies.

Conclusion:

Overall, the WMI reflects an increase in quality goods and services that is becoming more prevalent globally–despite recent decreases in crude oil and commodity costs. This is most evident in the yen-based import price index which, though still high, has seen a slight decrease from July to August.

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The rise in wholesale inflation in Japan is a reflection of the increased access to quality goods and services that is becoming more prevalent in the global market. This trend is likely to continue, putting pressure on prices for a broad range of items that more directly affect retailers, such as utility bills and electronic devices.

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