Japan’s Producer Price Index (PPI) turned negative in August 2026, highlighting renewed price weakness at the wholesale level. According to data updated on 10 September 2026, producer prices fell 0.2% month-over-month, reversing a 0.1% increase recorded in July 2026.
The figures, measured on a month-over-month basis, show that the mild upward momentum in July has given way to declining prices in August. The shift from +0.1% to -0.2% suggests easing cost pressures for businesses, which could translate into lower input costs but also reinforces concerns about persistent deflationary tendencies in the Japanese economy. Policymakers and markets are likely to watch upcoming data closely to assess whether August’s decline marks the start of a broader trend or a temporary setback in price normalization.