Home ›› 26 Apr 2023 ›› Asia Biz
Japan’s business-to-business service inflation hit an eight-year high in the fiscal year that ended March, data showed on Tuesday, a sign inflationary pressure was broadening beyond goods reflecting a tight job market and solid domestic de-mand.
The data may keep alive market expectations that new Bank of Japan (BOJ) Governor Kazuo Ueda will phase out the bank’s massive stimulus programme in coming months, reports Reuters.
The services producer price index, which measures the prices companies charge each other for services, rose 1.8per cent in fiscal 2022, higher than a 1.2per cent increase in the previous year, BOJ data showed on Tuesday. It was the fastest pace of increase since fiscal 2014, when it rose 3.3per cent.
In March, the index rose 1.6per cent from a year ago, marking the 25th straight month of year-on-year increase, the data showed. It followed a revised 1.7per cent gain in February.
The gain in March was driven largely by a rebound in inbound and domestic tourism with hotel fees up 32.4per cent from a year earlier, reflecting the government’s removal of Covid-19 curbs, the data showed.
The data came after top companies agreed to their largest pay increases in a quarter century in annual labour talks with unions in March.
