— Japan May CGPI -0.5% Y/Y; MNI Poll Median Forecast: -0.4%
— Japan May CGPI Posts 2nd Y/Y Drop in Row; Apr Revised -0.3%
TOKYO (MNI) – Japan’s corporate goods price index fell 0.5% on year
in May, marking a second consecutive year-on-year drop on lower prices
for lumber, chemicals and steel, reflecting softer global demand, data
released Tuesday by the Bank of Japan showed.
The May drop was slightly larger than the median forecast for a
0.4% fall in a MNI survey of economists and the biggest year-on-year
drop since -1.3% in March 2010.
International commodity prices have been falling on weak demand in
slowing emerging economies, putting downward pressure on CGPI.
The BOJ’s overseas commodity index — composed of 17 items
including crude oil, copper, gold, wheat and beef — fell 11.8% on year
in May, with the pace of decline accelerating from -8.2% in April and no
change in March.
From the previous month, CGPI fell 0.4% in May, marking the first
year-on-year drop in five months, led by gasoline, nonferrous metals
and chemicals.
After hitting a record 8.5% drop on year in July and August 2009,
CGPI peaked at +2.8% y/y in July 2011.
The number of CGPI items whose prices rose from a year earlier
totaled 290 in May, or 33.9% of the basket, while the number of items
whose prices fell came to 442, or 51.7%.
It is the third straight month that the number of decliners has
exceeded that of gainers.
tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-5403-4833 **
[TOPICS: M$J$$$,M$A$$$,MAJDS$,MMJBJ$]
