Japan's Service Inflation Hits Two-Year High Amid Broadening Pressure

A key gauge of Japan's service-sector inflation hit a two-year high in August, data from the Bank of Japan showed. The services producer price index rose 3.7% in August from a year earlier after a 3.6% gain in July.

The increase reflected rising freight, advertising, and rental lease fees, indicating broadening inflationary pressure.

The Bank of Japan raised interest rates to a 31-year high of 1.25% this month and its governor signaled the bank's readiness to push up borrowing costs further to prevent inflation from overshooting its target.