Japan's Corporate Services Inflation Hits Two-Year High

Japan's corporate services inflation has hit a two-year high, according to data released by the Bank of Japan. The services producer price index rose 3.7% in August from a year earlier after a 3.6% gain in July.

The increase in August was the fastest annual pace since June 2024 and reflected rising freight, advertising, and rental lease fees, indicating broadening inflationary pressure.

The data comes as the central bank continues to raise interest rates in an effort to combat inflation. The Bank of Japan's move is likely to be seen as a sign that further rate hikes are on the horizon.