Japan's producer price index (PPI) gained 2.3% on year in January and rose 0.2% from December 2025, according to data released by the Bank of Japan on Thursday.

Pushing up the PPI in January were beverages and foods, up 4.7% on year, and transportation equipment, up 1.2%, among other items.

In contrast, electric power, gas and water bills fell 4.3% on year in January.

During the month in review, the export price index rose 2.0% from the previous month on a contract currency basis, while the import price index gained 1.2% over the same period.

The PPI measures prices at the factory gate, or those charged to businesses and distributors. It is distinct from the consumer price index (CPI), which measures prices in retail locations.

A sustained rise in PPI signals that higher costs are working their way through the supply chain before the goods reach consumers.