Producer prices in Japan rose 2.9% yoy in June 2025, slowing from a marginally revised 3.2% growth in the prior month and matching market forecasts. This was the lowest producer inflation since August 2024. Cost eased for beverages and foods (4.5% vs 4.7% in May), electrical machinery (3.1% vs 3.9%), metal products (4.0% vs 4.9%), plastics (3.2% vs 3.5%), and general-purpose machinery (4.3% vs 5.3%). At the same time, prices shrank further for chemicals (-3.0% vs -3.0%) and iron and steel (-5.2% vs -5.0%). Cost of petroleum and coal fell 4.6% after rising 0.8% in May. In contrast, prices accelerated for production machinery (2.5% vs 1.8%), business-oriented machinery (2.6% vs 1.8%), transport equipment (2.1% vs 1.7%), other manufacturing (3.4% vs 3.1%%), and information (2.4% vs 2.0%). Prices of non-ferrous metals were flat, after a 2.0% fall in May. On a monthly basis, producer prices fell 0.2%, the second straight month of drop, after a downwardly revised 0.1% decline in May.