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Japan’s services producer prices rise, led by international freight

The increase in August services PPI was partly skewed by international transportation, where inflation jumped to 63.6% y/y from 58.2% and ocean freight accelerated to 74.2%.

Reported · Written up by our desk · Central Banks

Japan’s Services Producer Price Index accelerated to 3.7% year over year in August, up from 3.6%, marking the fastest annual increase in more than two years, according to Action Forex.

The outlet noted that the headline overstated the breadth of the acceleration, with services PPI excluding international transportation unchanged at 3.2% y/y.

International transportation inflation rose sharply to 63.6% from 58.2%, and ocean freight was a key driver, accelerating to 74.2% from 67.4%.

Still, domestic services inflation showed persistence, with high labor-cost services increasing to 2.8% from 2.7% and leasing and rental inflation rising to 14.1% from 13.1%, even as software development inflation slowed and hotel inflation fell.

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