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Japan’s Producer Inflation Picks Up to 7.1% in October
13 November 2026

Japan’s Producer Inflation Picks Up to 7.1% in October

Japan’s producer prices rose 7.1% in October from a year earlier, accelerating from September’s 6.8%, according to preliminary figures released by the Bank of Japan on 12 November 2026. Prices increased 0.7% from the previous month, reversing September’s revised 0.2% decline. The release provides a new reading on the prices businesses pay and receive for goods.

Import prices rise

Import prices increased 3.3% from September on a yen basis and stood 24.8% above their level a year earlier. Measured in the currencies used for the underlying contracts, the increases were 2.3% month on month and 19.2% year on year. Both measures therefore pointed to higher import prices in October.

The figures are preliminary. Comparisons with September use the revised values in the latest release, rather than the estimates published a month earlier. Source: Bank of Japan, October 2026 report.

What the index measures

The Corporate Goods Price Index tracks goods traded between businesses. Its domestic producer-price component covers goods produced and traded within Japan; it is not a measure of the full basket of goods and services purchased by households. Import prices are reported in both yen and contract-currency terms, so readers should keep the measurement basis consistent when comparing changes. Source: BOJ methodology.

Market interpretation

For readers following the yen and Japan’s monetary-policy outlook, the report raises a question about persistence: will higher business costs continue, and how much might eventually reach household prices? A renewed monthly increase is relevant evidence, but one release cannot settle either question.

The distinction matters because businesses may respond to rising costs in different ways, including changing selling prices, adjusting purchasing decisions or absorbing pressure in their margins. These are possible channels, not outcomes demonstrated by this report.

Subsequent producer-price readings, consumer-price data and company commentary can help test whether October’s increase becomes a broader pattern. The figures alone do not establish the Bank of Japan’s next policy decision or predict the yen’s direction.

Cover image: Bank of Japan headquarters in Tokyo, photographed on 16 August 2026. File photo: Syced / Wikimedia Commons, CC0 1.0.