Japan's producer price inflation slows to 6.8% in September, below market expectations

Japan’s producer price index rose 6.8% Y/Y in September 2026, moderating from August's pace and coming in below market consensus of 7.6%. The annual print marks the weakest growth in producer prices since May.

On a M/M basis, producer prices contracted 0.3%, matching the revised decline recorded in August and marking a second consecutive monthly drop. The monthly contraction defied market forecasts, which had anticipated a 0.5% increase.

Following the data release, Japanese markets reacted in post-holiday trading on Tuesday, the Nikkei 225 Index fell 2% to below 68,000, extending its decline to a fourth consecutive session, snapping a two-day advance. Meanwhile, the Japanese yen strengthened toward 158 per dollar.