Arabic version: تباطؤ نمو أسعار المنتجين في اليابان إلى 7.2% في يوليو

According to Cnbc, producer prices in Japan rose 7.2% year on year in July, easing from a revised 7.3% increase in June. The result was below the 7.4% rise expected by economists surveyed by Reuters. On a month-on-month basis, the producer price index was only marginally higher.

Electricity prices were the biggest month-on-month contributor to the July producer price index, adding 0.23 percentage point to the increase compared with June. Lower prices for energy and chemicals partly offset that contribution.

Higher energy prices have increased imported inflation pressures for Japanese businesses, while larger dollar payments have added pressure on the yen. The yen-based import price index rose 29.1% in July, following a 30.1% increase in June. The currency approached 164 against the U.S. dollar in late July before coordinated intervention by Tokyo and Washington toward the end of the month strengthened it. The yen has already given back more than half of those intervention-led gains.

Consumer inflation has remained comparatively lower despite the elevated producer-price reading. Headline inflation was 1.9% in June and core inflation was 1.6%. Analysts previously told CNBC that subsidies from the Takaichi administration have helped shield consumers from higher energy prices. Bank of Japan board members, in their summary of opinions for the July meeting, warned that higher oil prices posed an upside risk to prices, with some calling for faster rate increases to contain inflation.