Japan: September CGPI: Domestic CGPI Declines MoM for Second Consecutive Month

The domestic corporate goods price index (CGPI) fell -0.3% mom in September (August: -0.3%), the second consecutive monthly decline. In yoy terms, the index decelerated to +6.8% from +7.6% in August. This was largely due to a sharp drop in agricultural, forestry & fishery product prices, mainly rice. On the other hand, prices rose for machinery, suggesting that upstream price increases in the supply chain are spilling over downstream. Import prices fell slightly mom for the second consecutive month. Import prices (yen basis) fell -0.2% mom, the second consecutive monthly decline; while the index stood at +24.5% yoy, this marked a deceleration from around 30% in June-July. Yen-based export prices rose +0.5% mom in September and stood at +17.9% yoy, with electrical & electronic equipment (+2.9% mom; contribution: +0.61 pp) continuing to drive the increase reflecting the AI boom.