Against this background, the producer price index (PPI) in Japan -which captures prices of goods traded within the domestic corporate sector -- reached 8 percent for October on a year-on-year basis, the highest level since early 1981 in the aftermath of the second oil shock.
On the other hand, the year-on-year rate of change in the consumer price index (CPI) -- which captures domestic consumer prices of goods and services -- for all items excluding fresh food has been at around 0 percent recently, despite the rise in energy prices.