FX.co ★ Japan Producer Inflation Holds Steady at 2.7%

In November 2025, Japan witnessed a 2.7% year-on-year increase in producer prices, maintaining the same rate as October and aligning with market predictions. The pricing uptrend was observable across numerous sectors. Notably, transport equipment prices climbed slightly to 1.6% from 1.5% in October, while beverages and foods remained steady at 4.9%, following a slight dip from 5.0% prior. General-purpose machinery saw an increase to 2.7% compared to 2.5%, and other manufacturing sector costs adjusted slightly down to 2.3% from 2.6%. Significant price hikes were recorded for non-ferrous metals at 14.9%, up from 11.9%, and electrical machinery which rose to 2.3% from 1.7%. A marked increase was observed in production machinery, escalating to 3.6% from 2.5%. Meanwhile, metal products experienced a marginal rise of 0.1%, previously at 0.7%, while plastics saw a decrease to 0.3% from 1.2%. Information and communications increased to 1.5% from 0.3%, though business-oriented machinery showed a slight reduction to 0.7% from 0.8%. Conversely, there were notable declines in prices for chemicals, which fell by 3.6% compared to 3.8% previously, iron and steel, reduced by 6.8% from 7.1%, and petroleum and coal products, which dropped by 2.6% having been at 0.8%. On a month-to-month basis, producer prices edged up by 0.3%, in line with expectations, though slightly lower than the revised 0.5% increase seen in the preceding month.