Japan’s producer prices rose last month for the first time since March 2015, while a month-on-month rise in inflation was boosted by a rise from fuel and chemicals. Prices rose 0.5 per cent year on year, snapping 21 consecutive months of decline, according to the Bank of Japan.

January’s figure was a substantial improvement from December’s fall of 1.2 per cent and better than a median forecast from economists surveyed by Bloomberg predicting no change in prices.

In month-on-month terms producer prices rose 0.6 per cent in January against a revised 0.7 per cent rise in December (previously 0.6 per cent). Economists had expected month-on-month price growth to fall to 0.2 per cent from the previous month.

Price rises for petroleum and coal products contributed 0.35 percentage points to the monthly headline figure, while chemicals and related products added 0.17 percentage points.

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