Japan's corporate goods inflation accelerated to 7.1% YoY in October, signaling
persistent price pressure at the firm level. SMBC Nikko Securities economists
say higher transport and insurance costs from switching to alternative oil
procurement channels could keep import costs elevated in the near term,
sustaining corporate-level inflation. With firms more willing to pass through
cost increases, corporate inflation may only moderate gradually even if import
costs ease; crude futures imply import-price gains will slow and turn YoY
negative in H2 FY2027.
