MNI BRIEF: Japan Sept Services PPI Rises 2.6% Vs. Aug 2.8%
MNI (TOKYO) - Japan’s services producer price index rose 2.6% y/y in September, slowing from August’s revised 2.8%, showing that corporate pass-through of cost increases remained solid despite the pace slowing due to the strengthening yen, preliminary data released by the Bank of Japan on Friday showed.
Weaker transportation and postal activities (+1.7% vs. +2.2%) and advertising services (+4.4% vs. +5.4%) drove the result.
The SPPI fell 0.1% m/m in September after August's flat result.
The index of services with a high labour cost ratio rose 2.9% y/y in September, slowing from 3.0% in August, while the index of services with a low labour cost ratio rose 2.3% y/y, also slowing from 2.6% the prior month.
The data showed that firms are steadily transferring higher labour costs to retail prices.
BOJ Governor Kazuo Ueda said in September that bank officials are focused on the October price revisions, particularly services prices with high interest. (See MNI BOJ WATCH: Ueda Says BOJ Has Time To Watch Price Moves)