Wholesale inflation slowed for a fifth month in a row in May 2023 thanks to falling fuel and commodity prices. The CGPI (Corporate goods price index) was still up 5.1% compared to the same month in 2022, but this is lower than the Bank of Japan’s median monthly forecast of 5.5% and follows a 5.9% increase in April. The figure is also down from 10.6% in December 2022.
Price rises have slowed for electricity, fuel, nonferrous metals and chemical goods. But prices of beverages and foods still rose 7.9% in May from a year earlier and electric equipment prices were up 5.5%. These are areas that will directly impact consumer prices down the line meaning.
The core consumer inflation rate was 3.4% in April with brands continuing to raise prices. The Bank of Japan continues to forecast inflation gradually falling back below 2% within the year.