Wednesday, September 11, 2013
Heat Wave Nudges August Corporate Goods Price Higher
TOKYO (NQN)--The corporate goods price index for August rose 2.4% on the year, the sharpest growth since November 2008, the Bank of Japan said Wednesday.
The biggest factors behind the rise are the yen's recent decline against the dollar, which raised import prices, and higher crude oil prices due to uncertainty over Syria. Record-breaking summer temperatures also supported the increase.
On Aug. 12, the temperature in Kochi Prefecture hit 41 C, the highest ever recorded in Japan. Tokyo had several days in which the temperature was 35 C or higher.
The hot weather caused chickens to lay not only fewer eggs but smaller ones, as well, according to the BOJ's research and statistics department. According to the National Federation of Agricultural Cooperative Associations, also known as Zen-Noh, prices of larger eggs and other types of eggs rose 10-20% in August. Higher prices of agricultural and marine products, including chicken eggs, pushed up overall corporate goods prices.
The hot weather also impacted the price of scrap metal. The central bank said the supply of scrap metal decreased because demolition work for buildings was often delayed due to hot weather.
-- Translated from an article by NQN staff writer Aya Kikuchi