Japan’s producer prices rose 7.6% year-on-year in August 2026, slightly below the upwardly revised 7.7% increase in July, which had been the fastest pace since February 2023. The latest figure surpassed market expectations of a 7.4% rise, underscoring persistent cost pressures from commodities and energy.
Prices increased across all major categories. Growth was recorded in transport equipment (2.4% vs 2.6% in July), drinks and foods (4.3% vs 4.0%), chemicals (13.9% vs 13.8%), petroleum and coal products (14.7% vs 17.6%), iron and steel (2.4% vs 2.1%), electrical machinery (4.1% vs 4.9%), production machinery (3.9% vs 3.4%), metal products (3.5% vs 2.0%), electronic components (3.3% vs 3.4%), information and communications (19.5% vs 18.8%), and textiles (2.2% vs 1.8%).
On a monthly basis, producer prices declined 0.2% in August, reversing an upwardly revised 0.4% increase in July and marking the first month-on-month drop in a year.
