Japan's corporate goods price index, which measures costs of goods traded between businesses, went up three percent year on year in July, the Bank of Japan (BOJ) said Tuesday.
According to preliminary figures from the BOJ, the producer price index stood at 123.1 against the 2020 base of 100, up 0.3 percent from that of June.
The pace of growth on year marked the sixth straight month of expansion, the central bank data showed.
Local analysts noted that the monthly increase was mostly due to the Japanese government's halted subsidies for electricity and city gas, while the weakening yen exerted upward pressure on import prices.
In breakdown, electricity, city gas, and water prices rose by 6.7 percent year on year and 4.4 percent month on month.
The biggest contributor to the increases in corporate prices for the month was the price of nonferrous metals, which rose 18.5 percent from a year earlier, while that for plastic products, other industrial products, and products from agriculture, forestry and the fisheries sector also saw increases.
The only category where prices fell year on year was wood and wood products.
Meanwhile, the yen-based import and export price indices both increased by 10.8 percent year on year for the month.
The corporate goods price index, one of the country's important inflation gauges, measures prices that companies charge each other for goods and services.
Japan's wholesale prices continue to rise in July
Japan's wholesale prices continue to rise in July
The latest U.S. tariffs on imported vehicles are expected to increase uncertainty in global supply chains and could significantly impact automakers around the world, including those in Germany, German experts said recently.
U.S. President Donald Trump signed an executive order on Wednesday to impose 25 percent tariffs on all imported vehicles, starting from Thursday, while tariffs on auto parts will be fully implemented by May 3.
As one of the world's leading automobile manufacturers, Germany's automotive industry relies heavily on international markets, with the United States serving as a key export destination.
Industry insiders warn that the recent move by the U.S. is likely to increase uncertainty in global market and could have a significant impact on automakers worldwide, including those in Germany.
In a statement released on Thursday, Hildegard Muller, president of the German Association of the Automotive Industry, criticized the U.S. imposition of 25 percent additional tariffs on the automotive industry, calling it a serious blow to global supply chains that could create uncertainty for German car companies and their investments in the U.S.
Trump's policy is not "America First," but "America Isolated," and this protectionist approach will only lead to more losers, ultimately impacting American consumers, businesses, and the global economy, said Muller.
Omer Sahin Ganiyusufoglu, a member of German National Academy of Science and Engineering, said that the tariffs will increase the cost of manufacturing vehicles. Consequently, American consumers will face higher car prices, making it difficult for anyone to win.
"Tariff policies can be implemented swiftly, but it's important to carefully assess their effects. When tariffs are imposed on imported goods, the burden usually falls on consumers or businesses. These tariffs don't genuinely benefit the domestic population, and people will eventually recognize this," said Ganiyusufoglu.
"The U.S. will come to realize that in trying to throw a stone at others, it has ended up hurting itself and damaging its own citizens," he added.
Industry insiders note that the global automotive industry is at a crucial turning point in electrification and digital transformation, with technological innovation and supply chain restructuring as key development focuses. However, the recent U.S. tariff policy creates market uncertainty, prompting companies to reevaluate their global strategies.
US tariff move sparks criticism, concern in Germany
US tariff move sparks criticism, concern in Germany
