Japan's wholesale prices drop

Japan's wholesale prices fell 3.8 percent on year in October, marking the seventh consecutive month of decline, the Bank of Japan said in a report on Thursday.

According to the bank's preliminary report, the index of corporate goods prices stood at 101.5 against the 2010 base of 100, with the decline following a 4 percent drop logged in September, reported Xinhua.

The central bank said that falling prices for crude oil contributed to the downward pressure on wholesale prices in the recording period, with petroleum and coal products slumping more than 27 percent from a year earlier and chemical products retreating 8.5 percent.

While food and tobacco prices saw gains in October, the bank noted that iron and steel dropped 5.1 percent in the recording month and wholesale prices for non-ferrous metal logged a 5.3 percent drop.

The central bank data also showed that export prices declined 1.7 percent, while prices for imports tumbled 15.6 percent in yen terms.

The price index was down 0.6 percent on a month-on-month basis in October, marking a fifth successive month of decline.

The Corporate Goods Price Index (CGPI) tracks changes in supply side prices within Japan's economy and its changes often precede those in the overall Consumer Price Index.

CGPI readings can have a large effect on Japanese equities, commodities and foreign exchange markets following their release.