MNI BRIEF: Japan Sept Services PPI Rises 2.1% Vs. Aug +2.1%

Japan's services producer price index rose 2.1% y/y in September, marking the 31st straight rise following August's 2.1% gain, showing that pass-through of cost increases continued, preliminary data released by the Bank of Japan on Monday showed.

BOJ officials will focus on whether high services prices will lead to wage hikes in non-manufacturers as they are necessary to achieve the bank's 2% target, not only to boost inflation.

BOJ officials do not expect private consumption to derail from a moderate recovery path immediately but they are worried about slower consumption, as households’ savings and price cuts in supermarkets are observed.

The SPPI rose 0.1% m/m in September, unchanged from +0.1% in August.