Oil Ignites Japan Inflation to Three-Year High

May 16, 2026 | News On Japan

TOKYO - Japan’s corporate goods prices rose 4.9% in April from a year earlier, far exceeding market expectations as soaring crude oil prices linked to tensions in the Middle East pushed wholesale inflation to its highest level in nearly three years.

The Bank of Japan said on May 15th that the corporate goods price index accelerated sharply from the 2.9% increase recorded in March, marking the fastest pace of growth since May 2023.

Higher energy-related costs were a major factor behind the rise. Compared with the previous month, prices for petroleum and coal products, including naphtha and diesel fuel, climbed 11.8%, while electricity, city gas and water charges increased 8.4%.

The data highlights the growing impact of rising raw material and energy costs on Japanese companies, raising concerns that the burden could eventually spread further to consumer prices.

Source: テレ東BIZ

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