Pressure in the pipeline for higher Japan inflation?

ICYMI, yesterday we got PPI data from Japan

• Japan PPI for April 0.2% m/m and 2.1% y/y

The Producer Price Index (PPI) is an indicator of prices at the wholesale or producer level. The y/y result (2.1%) was well ahead of median expectations (1.8%), and came in at a 3 year high

• This will be partially due to higher energy prices supporting the prices of raw materials
• But there was also a pickup in final domestic consumer goods prices (to an 8½ year high at 1.2% for the y/y)
• Note that overall final consumer goods price inflation came in at a positive result (but only just, 0.2% y/y) for the first time in nearly two years

Apart from the "overall final consumer goods price inflation" the results are suggestive of pressure in the pipeline for higher CPI.

Still to come this week from Japan, data for:

• Tertiary activity later today
• Wednesday - revised industrial output data for March, and also machine orders (which will be useful as an indication to Q2 private investment (capex) )
• Thursday is the biggie, with the first estimate of Q1 GDP (expected to be positive ... which will make it five quarters in a row ... for the first time in 10 years for Japan)