Japan Corporate Goods Prices: Why They Rose 7.1% in October

What is Japan's corporate goods price index, and what did October show?

The corporate goods price index (CGPI) measures the prices of goods traded between companies in Japan, and its main gauge, the producer price index, rose 7.1% year on year in October 2026 ^[1]. The Bank of Japan compiles it each month and published the preliminary October figures at 8:50 a.m. on 12 November ^[1]. The index stood at 136.8, with 2020 as the base year of 100 ^[1].

The CGPI has three parts: the producer price index for goods sold within Japan, the export price index and the import price index ^[1]. The 7.1% headline figure refers to the first one ^[1][3].

The annual rate has climbed sharply this year. It was 2.8% in October 2025 and 2.2% in February 2026, then jumped to 5.5% in April and peaked at 7.7% in July, before easing to 6.8% in September ^[1]. October's 7.1% is the first re-acceleration since that peak ^[1][5].

Of the 515 items the Bank of Japan tracks, 469 were more expensive than a year earlier, 35 were cheaper and 11 were unchanged, Nikkei reported ^[3]. The table below shows the main groups.

Why did Japan's wholesale prices rise 7.1% in October?

Oil-related goods and utility charges did most of the work: petroleum and coal products, chemicals and electric power, gas and water together added half a point to the 0.7% monthly rise ^[1]. Petroleum and coal products rose 2.9% in the month and 15.9% on the year, with heavy oil, naphtha and jet fuel among the main contributors ^[1].

Chemicals followed oil. The chemicals group rose 1.9% on the month and 15.5% on the year, driven by xylene, ethylene and propylene ^[1]. NHK reported that the increase in chemicals was attributed to higher prices for naphtha, the oil-based raw material ^[4].

Utility charges also jumped. Electric power, gas and water rose 2.4% on the month and 15.8% on the year ^[1]. Nikkei reported that higher fuel costs and the reduction of government subsidies for electricity and gas bills were behind the rise ^[3]. Iron and steel rose 2.0% on the month ^[1].

Nikkei linked the renewed rise in crude oil since the summer to the prolonged military conflict between the United States and Iran ^[3]. A Bank of Japan official told NHK that many companies passed their higher costs on to prices in October ^[4].

Why are metals and electronics prices up so much?

Nonferrous metals were 31.7% more expensive than a year earlier, which Nikkei and NHK linked to demand from data centres and supply problems, and information and communications equipment was 15.9% higher ^[1][3][4]. Nikkei reported that copper and other materials needed for data centres had risen in price ^[3]. NHK added that damage to an aluminium production base in the Middle East was another factor ^[4].

The annual rise in metals is slowing, however. Nonferrous metals rose 40.3% in the year to September, against 31.7% in October, and fell 0.5% on the month ^[1].

Electronics are rising across the supply chain. Information and communications equipment rose 15.9% on the year, and Nikkei pointed to higher prices for personal computers ^[1][3]. On the import side, memory chips were among the main contributors to the monthly increase ^[1]. Export prices of electric and electronic products were 41.9% higher than a year earlier in yen terms ^[1].

For why memory and computer prices are rising, see the Pouyam guide RAM Shortage: Why Prices Are Soaring Because of AI Data Centers.

How much are import prices and the yen adding?

Import prices rose 24.8% year on year in yen terms in October, and 19.2% in the currencies contracts are written in, so a weaker yen added to costs that were already rising ^[1]. In the month, yen-based import prices rose 3.3%, against 2.3% in contract currency ^[1].

Energy is the largest part. Imported petroleum, coal and natural gas cost 46.1% more than a year earlier in yen terms and rose 6.4% in October alone ^[1]. Crude oil, jet fuel and gasoline were the main contributors to the monthly rise in import prices ^[1].

The yen played a role. The Bank of Japan's table shows the yen weakened 1.0% against the dollar in October alone ^[1]. investingLive noted that a weaker yen lifted import costs ^[8].

Exporters are also charging more. Export prices rose 16.7% year on year in yen terms and 12.2% in contract currency ^[1].

Why is rice getting cheaper while other prices rise?

Agriculture, forestry and fishery products fell 6.6% in October and were 25.0% cheaper than a year earlier, the only major group with a large fall ^[1]. Brown rice, polished rice and pork were the main items pulling the index down ^[1].

Nikkei reported that a lower collection price paid by agricultural cooperatives (JA) for the new rice crop, together with a build-up of stocks, pushed rice prices down ^[3]. Dai-ichi Life Research Institute noted that brown rice fell 19.0% in the month ^[5].

Without that fall, the headline figure would have been higher: farm products subtracted 0.28 points from the monthly change ^[1]. The same institute noted that, even as rice prices fall, cost pass-through is continuing for processed foods, and that beverages and foods rose 4.8% on the year, up from 4.4% in September ^[5].

Why is consumer inflation only 2.1% when wholesale prices rise 7.1%?

Japan's core consumer price index rose 2.1% in September 2026, far below wholesale inflation, partly because government subsidies held down household energy bills ^[6]. CNBC reported that consumer energy prices fell 0.6% in September despite the Iran war, because of subsidies from the Takaichi administration ^[6]. The measure that excludes fresh food and energy, which CNBC described as the Bank of Japan's preferred gauge, was 2.4% ^[6].

Wholesale costs reach shops slowly. Dai-ichi Life Research Institute warned of a possible "second wave" of price pass-through: firms are still passing earlier cost increases downstream, and upstream prices have risen again on higher resource prices ^[5]. It expects consumer inflation to exceed 3% early in 2027 ^[5].

The gap also reflects what each index covers: the CGPI measures prices of goods traded between companies ^[1], while the CPI measures what consumers pay ^[6].

Japan is not alone. For a comparison with the United States, China, Turkey and the euro area, see the Pouyam guide Wholesale Inflation by Country: US, Japan, China, Europe.

What does it mean for Bank of Japan interest rates?

On 30 October 2026 the Bank of Japan kept its short-term policy rate at around 1.25%, in an 8–1 vote, with one board member proposing a rise to 1.5% ^[7]. The October CGPI was published after that meeting.

Some analysts expect a further increase. Nomura Research Institute's Takahide Kiuchi wrote in October that the Bank of Japan raised rates in September after a shorter-than-usual gap and that another 0.25-point rise was likely at the December meeting ^[9]. investingLive said the October CGPI beat strengthened the case for a December hike ^[8].

This page reports official data and analysts' views; it does not give investment, loan or savings advice. Higher wholesale prices can affect what households pay over time, but the timing and size depend on how firms set prices and on government policy ^[5][6].

How do I read the Bank of Japan's CGPI release?

Start with the producer price index's monthly and yearly change, then check the group table, the import price index and whether the figures are preliminary or revised ^[1].

1. Headline: the first line of the release shows the monthly change, 0.7% in October, and the table shows the yearly change, 7.1% ^[1].
2. Summer electricity: a second series removes extra summer electricity charges from July to September; for October it rose 0.9% on the month ^[1].
3. Contributions: page 2 lists which groups added most to the monthly change, such as petroleum and coal products, 0.20 points ^[1].
4. Yen and contract currency: compare the two import price measures to see how much of the rise comes from the exchange rate ^[1].
5. Revisions: figures marked r are revised; the October numbers are preliminary ^[1].

The Bank of Japan publishes the CGPI around the middle of each month and lists all releases on its website ^[2].