Japanese Producer Inflation Surges to Over Three-Year High in June

Japanese producer inflation (PPI) surged by 7.1% year-on-year in June 2026, accelerating from 6.6% in May and exceeding market expectations of 6.8%. This marks the fastest annual pace of producer inflation since March 2023, primarily driven by persistent supply-driven cost pressures from energy market disruptions linked to geopolitical hostilities in Iran, as well as a weaker yen.