Japan’s Corporate Service Price Index saw a notable increase of 2.8% yoy in April, surpassing the expected 2.3% yoy and accelerating from 2.4% yoy in the previous month. This marks the fastest annual rise since March 2015. On a monthly basis, service prices rose 0.7% mom from March, though this was a slight slowdown from the prior month’s 0.9% mom increase.
The significant annual gains can be attributed to rising labor costs in labor-intensive service sectors, particularly in areas such as machine repair and industrial facility renovation. This surge in service prices highlights the growing cost pressures within Japan’s service industry, driven by an tight labor market.
