MNI BRIEF: Japan Feb Services PPI Rises 2.1% Vs. Jan +2.1%

Japan's services producer price index rose 2.1% y/y in February, marking the 36th straight rise and unchanged from January's 2.1%, showing continued pass-through of cost increases, preliminary data released by the Bank of Japan on Tuesday showed.

Higher transportation and postal activities (+2.6% in Feb. vs. +2.5% in Jan.), real-estate services (+1.5% vs. +1.3%) and lower leasing and rental (+2.1% vs. +2.5%) drove the increase.

The Bank of Japan is now focused on whether wage hikes announced by major and smaller firms will lead to a rise in services prices, which are revised in April, on the back of high labor costs.

The SPPI rose 0.2% from the previous month in February after falling 0.5% in January, marking the first m/m rise in two months.

The BOJ exited its easy policy settings last week. (See MNI BOJ WATCH: Ueda Says Rate Path Will Depend On Prices)