Japan’s corporate service prices surged in September, fueling expectations that the Bank of Japan (BOJ) may raise interest rates again before the year ends. The latest data from the BOJ showed that service costs for businesses climbed 3.7% year-over-year, up from a revised 3.5% increase in August. This acceleration in inflationary pressures comes as markets anticipate further monetary policy tightening.
The most dramatic rise was seen in ocean freight transportation costs, which skyrocketed 97.7%, the largest jump since records began in 1986. This sharp increase was attributed to the ongoing Middle East conflict, which has disrupted global shipping routes and driven up logistics expenses.
The BOJ’s report, published on Tuesday, underscores the growing inflationary trends in Japan’s economy. Analysts and investors are now closely watching the central bank’s next move, with many predicting another rate hike to curb rising prices and stabilize the economy.