Japan PPI December: +0.3% m/m (vs. expected 0.0%, prior +0.2%)

<p>Japan's PPI is also known as the Corporate Goods Price Index, For December 2023:</p><p>+0.3% m/m</p><ul><li>expected 0.0%</li><li>prior +0.2%</li></ul><p>+0.0% y/y</p><ul><li>expected -0.3%</li><li>prior +0.3%</li></ul><p>—</p><p>The Producer Price Index (PPI) in Japan is also known as the Corporate Goods Price Index (CGPI)</p><ul><li>its a measure of the average change over time in the selling prices received by domestic producers for their output</li><li>is calculated by the Bank of Japan</li></ul><p>Unlike the Consumer Price Index (CPI), which measures the price change that consumers see for a basket of goods and services, the CGPI focuses on the change in the prices of goods sold by companies.</p><p>The PPI reflects some of cost pressures faced by producers</p><ul><li>its based on a basket of goods that represents the range of products produced within the Japanese economy, including items such as:<ul><li>raw materials like metals and chemicals</li><li>semi-finished goods</li><li>and finished products</li><li>different weights are assigned to each category within the index based on its contribution to the overall economy.</li></ul></li><li>it does not account for the quality improvements in goods and services over time, which might lead to overestimation of inflation<ul><li>additionally, it reflects only the prices of domestically produced goods, leaving out the impact of imported goods</li></ul></li></ul><p>The PPI can be used as a guide to inflationary pressures in the economy:</p><ul><li>If producers are facing higher costs, they may pass these on to consumers, leading to higher consumer prices.</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.