Producer inflation in Japan eased back to 2.5 percent in August after popping to 3.0 percent in July and staying sub-3.0 for 10 months. It reflects slowing energy and commodities markets, with the world worried about the drag from China's property market woes. On the month, the corporate goods price index (CGPI) is stable, down 0.2 percent, after a 0.3 percent rise.

Producer inflation in Japan is expected to ease back to 2.8 percent in August after popping to 3.0 percent in July and staying sub-3.0 for 10 months. It reflects slowing energy and commodities markets, with the world worried about the drag from China's property market woes. On the month, the corporate goods price index (CGPI) is seen stable, up 0.1 percent, after a 0.3 percent rise.

The Producer Price Index (PPI) is a measure of the average price level for a fixed basket of capital and consumer goods paid by producers. Analysts look to the PPI for early signs of inflation in the production process.

The producer price index focuses on the prices of goods transacted between companies. It was previously known as the corporate goods price index. The index reflects the price level for the supply and demand of individual industrial goods. This index is calculated by the BoJ Research and Statistics Department. Three indexes are contained in this release - the domestic producer index, the export price index and the import price index. It is the domestic index that market players follow. The PPI comprehensively tracks input price pressures; however, the PPI has a track record of increasing and not necessarily feeding through to the CPI because of weak demand. But if an increase in the PPI is followed by a rise in the CPI, concerns about inflation may prompt the Bank of Japan to raise interest rates.