Japan PPI for April 0.2% m/m and 2.1% y/y

Producer Price Index (PPI) data from Japan; the PPI is a measure of prices at the wholesale, or producer level

0.2% m/m

• expected -0.1% m/m, prior 0.5%

2.1% y/y

• expected 1.8/% y/y, prior 1.4%

Both the m/m and y/y come in ahead of estimates

4th consecutive month of PPI rises (y/y) (prior to this it was 21 months consecutively of falls)

The Bank of Japan and Japanese government want to see higher consumer price inflation, indeed the BoJ has a long-standing target of CPI at 2% y/y. The PPI is a measure of inflation at the business-to-business level; and some of the price rises at this level are hoped (by the aforementioned BoJ and government) to make their way through to the CPI.

Let's see how that plays out, but in a sign that will encourage the authorities, a part of this index, the 'domestic final good price' that does bear some relation to the CPI rose 0.6% y/y.