Japan’s CGPI Declines at Slower Pace in July

Wholesale prices in Japan contracted at a slower pace during July than in June, even as demand - both domestic as well as external

Japan's CGPI Declines at Slower Pace in July

Wholesale prices in Japan contracted at a slower pace during July than in June, even as demand – both domestic as well as external, improved as lockdowns were eased across the world. According to data released by the Bank of Japan, the corporate goods price index (CGPI) fell by 0.9% YoY in July, a lower pace than the 1.6% decline seen in June and better than economists’ forecast of a 1.1% decline.

The improvement in the decline was driven by an easing in the fall of prices of gasoline chemicals, non-ferrous metals as well as agricultural prices. Demand for products began to rebound as lockdowns were lifted and consumers’ as well as businesses’ consumption improved as a result.

Ichiro Muto, head of the BOJ’s price statistics division noted, “As economies re-open, downward pressure on prices from the pandemic appears to be easing. But there’s no change to the broader picture, in which the pandemic is weighing heavily on wholesale prices.”

Despite this slightly better economic data, Japan’s economy is expected to continue in recession into Q2 2020 as well. Economists expect the economy to have contracted by 26.3% during the second quarter of the year as a result of the coronavirus pandemic and the ensuing shutdown.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers