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REPEAT: Japan July Biz Service Price Rise Slows Y/Y on Ads

Repeats Story Initially Transmitted at 00:55 GMT Aug 25/20:55 EST Aug 24
--Corrects Phrasing in First Paragraph
     TOKYO (MNI) - The Service Producer Price Index with a 2010 base year was
released Friday by the Bank of Japan:
     * Japan's service producer prices rose 0.6% on year in July, the 49th
straight year-on-year rise, but the pace of increase decelerated from +0.7% in
June (revised down from +0.8%). The decelerating was due to drops in TV and
Internet advertising costs, which were largely offset by slight pickups in the
prices for leasing and temporary employment agency services. Transportation
costs continued to post solid gains.
     * Business service prices have shown modest gains in a range of +0.2% to
+0.8% y/y in the past year, reflecting a gradual pickup in domestic demand and
continued labor shortages.
     * On the month, the SPPI rose 0.3% in July after falling 0.2% in June. The
rise was led by higher prices for information and communications as well as
leasing and rentals.
--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com
--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com
--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

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