Japan’s services produce price index rose 1.9% y/y in August, marking the 18th straight rise, but slowed from a revised +2.0% in July, preliminary data released by the Bank of Japan on Tuesday showed
The data showed that services prices don’t rise easily in Japan compared with other countries. Unless services prices rise, Japan’s inflation rate will not rise in a stable and sustainable manner as desired by the Bank of Japan. BOJ officials are focused on corporate price revisions in October amid the rise in resource prices.
The August rise was due mainly to high prices for transportation and postal activities, although the year-on-year rise slowed from the previous month, and higher prices for financial and insurance.
The SPPI fell 0.2% from the previous month, slowing from +0.3% in July.