A key indicator of inflation in Japan’s services sector held steady at 2.7% in August, data showed on Wednesday, underscoring the central bank’s view that rising wages are prompting more companies to pass on higher labor costs through price increases.
The Bank of Japan is closely monitoring inflation in the services sector to determine whether demand-driven price increases are increasing enough to justify further rate hikes.
BOJ data showed the year-on-year increase in August in the services producer price index, which measures the price companies charge each other for services, was unchanged from a revised 2.7% increase in July.
