Japan’s producer prices rose 7.6% year-on-year in August 2026, following an upwardly revised 7.7% increase in the prior month, which had been the fastest pace since February 2023. The latest reading was above market expectations of 7.4%, indicating commodity and energy cost pressures. Prices continued to grow for all components, including transport equipment (2.4% vs 2.6% in July), drinks and foods (4.3% vs 4.0%), chemicals (13.9% vs 13.8%), petroleum & coal (14.7% vs 17.6%), iron & steel (2.4% vs 2.1%), electrical machinery (4.1% vs 4.9%), production machinery (3.9% vs 3.4%), metal products (3.5% vs 2.0%), electronic components (3.3% vs 3.4%), and information and communications (19.5% vs 18.8%), and textile (2.2% vs 1.8%). On a monthly basis, producer prices fell 0.2%, reversing an upwardly revised 0.4% gain in July and marking the first monthly decline in a year.