Daiwa Securities: Japan's producer prices may rise over 5% in the short term, with crude oil costs remaining high

(1) Daiwa Securities economist Yutaro Suzuki pointed out that Japan’s producer prices are expected to rise by more than 5% year-on-year, and the costs of crude oil and petroleum products may continue to remain high in the short term. (2) Data released by the Bank of Japan on Friday shows that in June, the year-on-year increase in corporate goods prices had reached 7.1%. (3) Suzuki stated that although the recent escalation of tensions in the Middle East requires vigilance, as the situation in the region gradually improves, crude oil prices are expected to gradually decline over the longer term. (4) He added that the Corporate Goods Price Index may also see a moderate decline before the end of the year.