MNI BRIEF: Japan Dec Services PPI Rises 2.9% Vs. Nov's 3%
MNI (TOKYO) - Japan’s services producer price index rose 2.9% y/y in December, slowing from November’s unrevised 3.0%, showing that corporate pass-through of cost increases remained solid, preliminary data released by the Bank of Japan on Tuesday showed.
The December index was lowered by other services (+4.2% vs. +4.6%), including hotels (+12% vs. 19.1%), although the index was boosted by advertising services (+3.5% vs. +3.2%) and by transportation and postal services (+2.9% vs. +2.8%).
The index of services with a high labour cost ratio rose 3.1% y/y in December, slowing from 3.2% in November, and the index of services with low labour cost ratio rose 2.8% y/y in December, also slowing from 2.9% in November.
The data showed that firms are raising services prices on the back of high labour costs caused by continued labour shortages and bank officials are focused on the price revision and wage hikes in or after April.
The SPPI was unchanged m/m in December, slowing from +0.3% in November.
The SPPI rose 2.9% y/y in 2024, up from 2.2% in 2023.