Japan’s Input Inflation Flatlines for Weakest Result Since 2021
- PPI unchanged from a year prior, slowing for the past year
- Supports BOJ on cooling price pressures and later policy shift
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Japanese input prices were unchanged last month from a year earlier, the weakest showing in almost three years as the yen’s recent gains helped cap import costs.
The December producer price index, a measure of input prices for firms, was flat versus the same period in 2022, the first month without an advance since February 2021 and the 12th consecutive month in which price growth decelerated. The reading was a tad stronger than the consensus call for a 0.3% decline. From the prior month, prices rose 0.3%, outpacing expectations of no change.