Japan’s producer prices slowed their rate of increases more than analysts had expected in September, dropping under the latest consumer inflation reading, something not seen since early 2021. It was viewed by analysts as confirmation that, as the central bank asserts, import-driven price pressures are moderating.

On Thursday, the Bank of Japan reported that, in the slowest read since March of 2021, the measure of input prices for Japanese firms increased 2% compared to one year earlier. That reading was compared to analyst expectations for a 2.4% gain. Prices were down 0.3% from the prior month. Analysts had predicted there would be a 0.1% gain.

The yearly result was lower than the 3.1% August increase in the benchmark measure of consumer prices. Inflation for materials last came in below consumer inflation in February of 2021. The September consumer price report will come out on October 20th.

There was a continuing fall in imported materials, especially wood and energy, according to the report. That reinforces the argument by the BOJ that the cost pressure for producers is waning, and that consumer inflation is presently peaking. However analysts note that as the yen has declined recently, that could boost the prices of imported products and commodities, and that could reignite inflationary pressures.

Later this month the BOJ will hold its meeting. It is largely expected to increase its inflation forecasts, due to the continued sticky nature of inflation in the nation.