japan-june-corporate-goods-price-index-up-7-1-percent
# corporate goods price index# inflation# crude oil# pass-through# BOJ
Key Points
- June corporate goods price index rose 7.1% year on year
- Driver: Middle East tensions lifting crude, feeding oil-product pass-through
- Cost pressure keeps transmitting toward consumer prices
Analysis
The corporate goods price index tracks prices between firms — the upstream of consumer inflation. June's 7.1% year-on-year jump was driven, officials say, by Middle East tensions lifting crude and oil-product costs being passed along. The signal: inflation pressure persists and is moving downstream. Upstream gains eventually reach retail prices and service fees, and sticky cost-push inflation keeps BOJ normalization on the table. Watch crude and how broadly pass-through spreads. (From the NHK summary; details per BOJ.)