Bank of Japan data released Friday showed the corporate goods price index (CGPI), which measures prices companies charge each other for goods and services, rose 4.9% in April from a year earlier, sharply exceeding market forecasts for a 3.0% increase.
The annual increase was the fastest since May 2023 and accelerated significantly from March’s 2.9% rise.

The figures underscored the growing impact of higher import costs on Japan’s economy following disruptions to oil shipments through the Strait of Hormuz amid the Iran conflict. Japan remains heavily dependent on imported energy, particularly crude oil from the Middle East.

The yen-denominated import price index jumped 17.5% in April from a year earlier, marking the steepest increase since December 2022 and reflecting both elevated global energy prices and the weaker yen’s effect on import costs.

On a monthly basis, wholesale prices rose 2.3% in April after increasing 1.0% in March, the data showed.
Petroleum and coal product prices climbed 5.3% from a year earlier as crude oil and jet fuel costs rose, while chemical goods prices surged 9.2%, the strongest increase since September 2022. Naphtha prices soared 79.4%, according to the report.

The data came a day after a Bank of Japan policymaker called for raising interest rates “at the earliest stage possible” to contain inflationary pressures stemming from higher fuel costs and supply disruptions linked to the Middle East conflict.

Economists said the breadth of price increases would be closely monitored by policymakers assessing whether inflation pressures are becoming more entrenched across the broader economy.

“If price rises are contained to oil-related goods, there is little need for the BOJ to respond,” said Masato Koike, senior economist at Sompo Institute Plus.
“But if they broaden to a wide range of goods, the BOJ will likely have to raise rates,” he said.

The inflation surge adds to pressure on the central bank as it seeks to normalize monetary policy after years of ultra-low interest rates and stimulus measures aimed at reviving growth and inflation.

The sharp increase reflects a sustained rise in crude oil prices, driven by the effective closure of the Strait of Hormuz, a critical oil transit chokepoint through which roughly a fifth of global oil supply typically flows. Tankers stranded in the region have curtailed deliveries, constraining supply and pushing benchmark oil prices higher.

Market analysts say the price trajectory briefly softened in mid-April amid expectations of a potential ceasefire. “There was optimism that this could mark the beginning of the end of the conflict,” said Rob Smith, director of global fuel retail at S&P Global Energy, noting that crude and gasoline prices temporarily declined before reversing course as hostilities persisted.

Crude oil accounts for the largest share of gasoline costs in the United States, representing about 51 percent of pump prices in 2025, according to the US Energy Information Administration. Taxes contribute roughly 17 percent, while refining, distribution, and marketing costs make up the remainder.

The International Energy Agency has described the disruption linked to the Strait of Hormuz as the largest supply shock in oil market history, with prices reaching as high as $112 per barrel in early April. Analysts note that gasoline prices tend to track crude movements closely, with minimal lag.

Additional upward pressure followed US actions in April to block Iranian oil exports, a move analysts say removed a key supply source from global markets. “Iran had been moving an unusually high amount of oil to global markets, which helped moderate prices,” said Jim Krane, an energy research fellow at Rice University’s Baker Institute, adding that the restrictions intensified price pressures.

Energy markets have remained highly sensitive to geopolitical developments, with fluctuations tied to reports of attacks in the Arabian Gulf or shifts in diplomatic efforts. “The oil market is exquisitely sensitive to what’s coming out of the White House,” said Bob Kleinberg, a research scholar at Columbia University’s Center on Global Energy Policy.

The pace of price increases has echoed previous geopolitical shocks, including a 48-cent weekly rise at the outset of the Iran conflict. However, analysts caution that no near-term relief is likely, as prolonged constraints in the Strait of Hormuz are expected to sustain upward pressure on prices.

Even in the event of a durable resolution, market participants say a return to pre-war pricing levels could take months due to lingering risk premiums associated with shipping through the region and heightened insurance costs for oil transport.

Speaking alongside Australian Prime Minister Anthony Albanese in Canberra, von der Leyen said the impact of the crisis was already being felt across economies through rising oil and gas prices.

“We all feel the knock-on effects on gas and oil prices on our businesses and our societies,” she said, highlighting the broader economic repercussions of prolonged instability in a region central to global energy production and transit.

Her remarks come as the Middle East conflict disrupts key supply routes and raises concerns over sustained volatility in energy markets.

The region accounts for a significant share of global oil exports, making it highly sensitive to geopolitical tensions.Von der Leyen emphasized that continued hostilities risk compounding inflationary pressures and undermining business confidence, particularly in energy-importing economies.

She urged all parties to pursue a diplomatic solution, stressing the urgency of de-escalation. “It is of utmost importance that we come to a solution that is negotiated, and this puts an end to the hostilities that we see in the Middle East,” she said.

Her comments reflect growing international concern over the broader economic fallout of the conflict, as governments and institutions monitor its impact on global trade, energy flows and financial markets.

Rising costs for key inputs such as plastic bottles, caps, labels and cardboard packaging have begun to squeeze margins, with some packaged water manufacturers already increasing prices.

Rahul Kumar, deputy chief executive at SLMG Beverages, said the company would consider price adjustments depending on competitive dynamics and consumer response.“If the war continues, the packaging material cost may continue to move up,” Kumar said, noting that broad-based price increases remain constrained in a highly competitive market.

India’s soft drinks market has intensified following the re-entry of Reliance Industries into the segment with its revival of the Campa cola brand in 2023. The move has triggered aggressive pricing and expanded distribution, limiting the ability of incumbents to pass on higher costs.

Kumar said SLMG Beverages had not implemented a portfolio-wide price increase in the past seven to eight years, reflecting price sensitivity among consumers and the presence of multiple national and regional competitors.

Despite cost pressures, the company is pressing ahead with capacity expansion to capture rising demand in India’s non-alcoholic ready-to-drink beverages market, which consultancy Redseer estimates could double to about $40 billion by 2030.SLMG Beverages plans to invest between 10 billion and 12 billion rupees in each of four new plants over the next five years.

The bottler, which accounts for more than 22% of Coca-Cola’s India volumes, is targeting net revenue of 100 billion rupees by 2026–27.The expansion will focus on populous states such as Uttar Pradesh and Bihar, where consumption levels remain relatively low but incomes are rising.

The company reported strong growth in the last fiscal year, with sales rising 49% to 67.73 billion rupees and net profit increasing 76% to 2.06 billion rupees, according to data from Tofler.

The developments underscore how the Middle East conflict is feeding into global supply chains, pushing up input costs for consumer-facing industries even in markets geographically distant from the conflict zone.