According to data released by the Bank of Japan on Wednesday, Japan's Corporate Goods Price Index (CGPI) increased by 4.0 percent year-on-year to 126.3 in April. This figure aligns with private sector forecasts and marks the fifth consecutive month of growth within the 4-percent range, although it represents a slight deceleration from March's 4.3 percent increase.

The CGPI's upward trajectory was primarily influenced by rising prices in the agricultural, forestry, and fishery sectors, notably including rice and eggs. Specifically, the prices of agricultural, forestry, and fishery goods saw a substantial surge of 42.2 percent compared to the previous year. This increase was largely propelled by soaring rice prices, exacerbated by an ongoing rise in egg prices attributed to the impact of avian flu.

The electricity, gas, and water supply sector also experienced a notable price increase, rising by 10.1 percent year-on-year. This uptick was partially attributed to the reduction of government subsidies designed to alleviate utility bills. Furthermore, food and beverage prices rose by 3.6 percent, reflecting the pass-through of increased costs associated with raw materials and logistics.

In contrast, the import price index, measured in yen terms, experienced a decline of 7.2 percent from the previous year. This decrease was attributed to a stronger yen and a concurrent drop in crude oil prices.

The CGPI serves as a crucial indicator, tracking the prices of goods exchanged between companies and playing a significant role in influencing consumer inflation, alongside the Corporate Services Price Index.