The Producer Price Index of Japan rose by 0.7 percent year-on-year in May 2019, down from an upwardly revised 1.3 percent increase in the previous month and matching market expectations. Softer inflation was mainly explained by petroleum & coal products (1.1 percent vs 4.1 percent in April); iron & steel (1.4 percent vs 1.8 percent) and general purpose machinery (1.6 percent vs 2.3 percent). In addition, prices fell for chemicals (-1.7 percent vs -0.4 percent); nonferrous metals (-6.2 percent vs -2.8 percent); electrical machinery & equipment (-1.3 percent vs -2.1 percent), information & communications equipment (-1.2 percent vs -1.4 percent), lumber & wood (-0.9 percent vs -0.7 percent) and electronic components & devices (-0.5 percent vs -0.7 percent). On a monthly basis, producer prices edged down 0.1 percent, following an upwardly revised 0.4 percent climb in the previous month Producer Prices Change in Japan averaged 1.41 percent from 1961 until 2019, reaching an all time high of 33.90 percent in February of 1974 and a record low of -8.60 percent in August of 2009.
Producer Prices Change in Japan is expected to be 1.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in Japan to stand at 1.90 in 12 months time. In the long-term, the Japan Producer Prices Change is projected to trend around 1.80 percent in 2020, according to our econometric models.