Producer prices in Japan rose 3.2% yoy in May 2025, slowing from a marginally revised 4.1% growth in April and missing market consensus of 3.5%. This marked the 51st month of producer inflation, though it was the lowest print since September. Cost eased for petroleum and coal (0.6% vs 6.3% in April), production machinery (2.6% vs 2.8%), plastics (3.4% vs 3.7%), and business-oriented machinery (1.5% vs 1.8%). At the same time, prices dropped further for chemicals (-3.1% vs -2.4%) and iron and steel (-4.8% vs -4.5%). Also, cost of non-ferrous metals fell 2.1%, after a 4.2% rise in April. In contrast, inflation was stable for transport equipment (1.7%) and other manufacturing (2.9%), while prices accelerated for beverages and foods (4.2% vs 4.0%), electrical machinery (3.8% vs 3.0%), metal products (4.8% vs 4.7%), general-purpose machinery (4.9% vs 4.4%), and information & communication (1.9% vs 1.5%). On a monthly basis, producer prices shrank 0.2%, marking the first fall in nine months.