Japan's Service-Sector Inflation Accelerates to 3.6% in July

A key indicator of Japan's service-sector inflation has accelerated in July, according to data released by the Bank of Japan.

The services producer price index rose 3.6 per cent from a year earlier, following a revised 3.4 per cent gain in June.

This increase adds to signs of broadening inflationary pressure in the economy, which has bolstered the case for a near-term interest rate hike by the central bank.

The data also shows that Japan's core consumer inflation accelerated in July as firms passed on rising import costs from a weak yen and the US-Israeli war with Iran.