MNI BRIEF: Japan's Sep Services PPI Rises 2.1%
Japan’s services producer price index accelerated to 2.1% y/y in September from 2% y/y in August, marking the 19th straight rise, according to preliminary data released by the Bank of Japan on Wednesday.
The September rise was due mainly to higher prices for advertising services and information and communications, as well as other items like hotels. The SPPI rose 0.1% from the previous month, reversing course from a revised -0.1% in August.
The data showed 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. BOJ officials are focused on corporate price revisions in or after October amid the rise in resource prices. (See MNI POLICY: BOJ Studies Inflation Risks; Wages In Focus)