Decline in Japan’s wholesale prices slows on easing pandemic drag

Japan saw its wholesale prices drop at a slower pace for three consecutive months ended February. This heavily indicates that a recent rebound in fuel prices and an increase in domestic demand will likely alleviate the country’s economy from deflationary pressures.

The corporate goods price index (CGPI) posted a 0.7% annualized contraction, data from the Bank of Japan showed. The reading followed after the index tallied a 1.5% drop in January.

On an annual basis, oil prices plunged 6.3% in February. The figure came milder than the 14.4% drop seen the previous month, underscoring an expansion in commodity and fuel costs across the world.

Domestic final foods prices, which loosely track the consumer price index, declined 0.1% from a year ago. The reading placed lower than the 0.8% contraction seen a month earlier.