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Japan's business services prices perk up near BOJ's inflation target

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TOKYO :Japan's business-to-business services inflation picked up in February on a tourism rebound and rising labour costs, data showed, offering the central bank hope that steady wage hikes would aid in sustainably hitting its 2 per cent inflation target.With inflation already exceeding the 2 per cent target

TOKYO :Japan's business-to-business services inflation picked up in February on a tourism rebound and rising labour costs, data showed, offering the central bank hope that steady wage hikes would aid in sustainably hitting its 2 per cent inflation target.

The services producer price index, which measures the prices companies charge each other for services, rose 1.8 per cent in February from a year earlier, up from a 1.6 per cent gain in January, BOJ data showed on Monday. Fees for services such as office cleaning, taxi and software development also rose, reflecting higher labour costs.

The outlook for wages and services costs is crucial in determining how soon the BOJ will tweak ultra-low interest rates, as bank officials have said higher wage hikes must accompany the recent cost-led inflation to contemplate an exit from loose monetary policy.

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Japan's business services prices rise 1.8% yoy in Feb - BOJTOKYO : Japan's business-to-business services prices rose 1.8 per cent in February from a year earlier, accelerating the pace of increase for a second straight month in a sign inflationary pressure was broadening, Bank of Japan (BOJ) data showed on Monday.The year-on-year rise in the services producer pri
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