Japan Services Producer Prices Soar 3.7% in August, Fastest Pace Since June 2024

Japan's services producer price index rose 3.7% in August from a year earlier, its fastest annual pace since June 2024, according to Bank of Japan data.

The reading follows a 3.6% gain in July and adds to signs of price pressure that will keep the central bank on course for further interest rate hikes.

The BOJ watches the gauge closely for evidence of how far firms are passing higher labour costs into service prices, which is reflected in higher freight, advertising, and rental and leasing fees.

The transport and postal group made the largest contribution to the annual gain, at around 1.1 percentage points, followed by other services at around 1 point and leasing and rental at around 0.8 points.