Japan's wholesale prices fell 4.2 percent in May from a year earlier for the 14th straight month of decline, weighed down by falling crude oil prices and a stronger yen, the Bank of Japan said Friday.
The index of corporate goods prices stood at 99.4 against the 2010 base of 100, the central bank said in a preliminary report.
On a month-on-month basis, however, wholesale prices, which affect consumer prices, gained 0.2 percent for the first increase in a year as oil prices were higher than in April.
The BOJ has pushed back its time frame for achieving its 2 percent inflation target amid the rout in crude oil and other commodity markets earlier this year.
Prices of petroleum and coal products lost 23.0 percent, the biggest decline among all items covered by the index. Those of nonferrous metals fell 17.2 percent amid growth concerns about China's economy, while prices of electric power, gas and water dropped 15.7 percent.
Among gainers, prices of agriculture, forestry and fishery products rose 5.0 percent, reflecting higher pork and beef prices. Lumber and wood products were up 1.6 percent.
A BOJ official told a briefing that moves in crude oil prices will be in focus as they have recovered to levels around $50 a barrel.
The survey also found fewer wholesalers raising food prices. The trend "also has to be watched," the official added.
The yen has been strengthening against other major currencies in recent months, reducing costs for Japanese importers.
Export prices slid 11.1 percent and import prices plunged 20.1 percent, both in yen terms.