BOJ Eyes Rate Hike as Japan's Corporate Inflation Accelerates

Japan's corporate services inflation accelerated in July to 3.6% year-over-year, according to data from the Bank of Japan.

This increase follows a revised 3.4% gain in June and reinforces the central bank's view that a tight labor market is pushing firms to pass rising costs on to consumers.

The services producer price index tracks the prices companies charge each other for services, providing insight into inflationary pressures within Japan's economy.

With core consumer inflation also accelerating in July, data suggests broadening inflationary pressure that could bolster the case for a near-term interest rate hike by the Bank of Japan.