FX.co ★ Japan Producer Prices Rise More than Expected

In September 2025, Japan witnessed a 2.7% year-on-year rise in producer prices, maintaining the momentum from the previous month while surpassing expectations set at 2.5%. Prices increased across most sectors, notably in transport equipment, which saw a rise of 2.0%, slightly down from 2.2% in August, and beverages and foods, which increased by 4.7%, compared to 4.9%. General-purpose machinery prices went up by 3.4%, a slight drop from 3.7% previously, and there was also a decrease in other manufacturing from 3.9% to 3.2%. Notably, non-ferrous metals experienced a sharp price hike of 9.6% as opposed to 6.2% before. In contrast, electrical machinery had a minor reduction in growth, down to 2.7% from 2.8%. Other sectors like production machinery (1.8%), metal products (2.6%), plastics (2.5%), information and communications (1.0%), and business-oriented machinery (0.8%) also saw modulated price increases. Conversely, prices continued to drop within chemicals, decreasing by 3.9% compared to 4.0% previously, as well as in iron and steel by 6.7% against 6.5%, and in petroleum and coal products by 1.8% from 1.5%. On a month-to-month basis, there was a recorded rise in prices by 0.3%, which exceeded the anticipated increase of 0.1%, effectively reversing the 0.2% decline that occurred in August.