Japan’s services producer price index rose 3.7% year on year in August, its fastest increase since June 2024, after 3.6% in July. Freight, advertising and rental lease fees rose, while the Bank of Japan watches the data for signs firms are passing on higher labor costs.
The index tracks prices companies charge one another for services. The BOJ raised interest rates to 1.25% this month, a 31-year high, and its governor signaled readiness to raise borrowing costs further to prevent inflation from overshooting the bank’s target.
