Japan’s corporate service inflation climbs in sign of broadening price pressures

Japan’s business-to-business service inflation accelerated in October as a tight job market lifted labour costs, underscoring a broadening of price pressures that could heighten the chance of a near-term end to ultra-loose monetary policy.
The services producer price index, which measures the price companies charge each other for services, rose 2.3% in October from a year earlier, up from a revised 2.0% gain in September, Bank of Japan (BOJ) data showed on Monday.
Information and communication, machinery repair and worker dispatching businesses saw fees increase from year-earlier levels due to higher labour costs.
A surge in inbound tourism drove up hotel fees 49.9%.
The data suggest Japan’s economy is making progress towards achieving sustained rises in inflation accompanied by solid wage growth.