Japan April wholesale prices jump on rising material costs

FILE PHOTO: Wholesalers check the quality of frozen tuna displayed during at the Toyosu fish market’s first tuna auction in this year in Tokyo, Japan, January 5, 2019. REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) – Japan’s wholesale prices jumped 3.6% in April from a year earlier, central bank data showed on Monday, a sign rising energy and commodities costs were weighing on corporate margins.

The rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, was faster than a median market forecast for a 3.1% increase and followed a 1.2% annual increase in March.

Oil goods prices rose 39.3% in April from a year earlier and nonferrous metals prices by 35.2% reflecting robust global demand and the base effect of last year’s plunge, the data showed.

Domestic final goods prices, which loosely track the consumer price index, rose 1.7% from a year earlier, the data showed.

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