High Oil Prices May Keep Japan Producer Prices Elevated, Daiwa Securities Says

Daiwa Securities economist Yutaro Suzuki said high oil prices could keep Japan’s producer prices at elevated levels. According to Jin10, Suzuki said Japan’s producer price increase is expected to exceed 5% year over year, and crude oil and petroleum product prices may stay high for some time. Data released by the Bank of Japan on Friday showed that Japan’s corporate goods price index rose 7.1% year over year in June. Suzuki said that while renewed escalation of tensions in the Middle East warrants caution, crude oil prices are expected to gradually decline over the long term as conditions in the region improve. He added that the corporate goods price index could also ease moderately before the end of the year.