Producer prices in Japan up for 3 straight months

Producer prices in Japan are continuing their upward trend. They have been rising for three months due to growing demand for oil and other materials in some parts of the world.

A preliminary Bank of Japan report, released Thursday, says the corporate goods price index for May was up 4.9 percent from a year earlier. That is the biggest year-on-year increase since September 2008.

The increase is largely because of higher crude oil prices, driven by demand from the US and Europe, where vaccine rollouts are making steady progress.

Prices of petroleum, coal and chemical products are all higher.

Nonferrous metals are also becoming more expensive due to growing demand for copper from China and Western economies.

The Bank of Japan warns that higher materials prices could affect corporate earnings.