Japan’s services production price index, reflecting the prices businesses charge one another for services, increased by 2.9% in October compared to the same month last year, according to data from the BOJ, up from a 2.8% rise in September. Inflation in the service sector is being monitored carefully by the BOJ for indications on whether price increases driven by demand are becoming widespread enough to warrant additional interest rate hikes. In March, the BOJ eliminated negative interest rates and in July increased its short-term policy rate to 0.25%, believing that Japan was making consistent strides towards sustainably reaching its 2% inflation goal.
Today japan’s inflation rate in corporate services remains constant.
