Japan’s producer prices rose 4.9% yoy in April 2026, accelerating from an upwardly revised 2.9% increase in the prior month and exceeding market estimates of 3%. This was the fastest annual growth since May 2023, amid intense cost pressures following a spike in energy costs linked to supply chain disruptions from the war in Iran. Main upward pressure came from transport equipment (1.6% vs 1.4% in March), drinks and foods (4.1% vs 4.3%), chemicals (9.2% vs 0.8%), petroleum & coal (5.3% vs -7.1%), electrical machinery (3.8% vs 2.9%), production machinery (3.8% vs 4.2%), metal products (1.0% vs 0.6%), electronic components (2.9% vs 2.6%), and information and communications (5.8% vs 6.5%). At the same time, textile prices rebounded (0.7% vs -0.5%), while the cost of iron & steel fell more slowly (-1.9% vs 4.9%). On a monthly basis, producer prices increased 2.3%, picking up from a 1.0% gain in March and marking the strongest monthly rise since April 2014.