Japan's modest business services price rise highlights dilemma for central bank

TOKYO : Japan's business-to-business services prices rose 1.6 per cent in January from a year earlier, much slower than a 9.5 per cent jump in wholesale goods prices, a sign the recent pick-up in inflation is driven largely by cost-push factors rather than higher wages.

The year-on-year rise in the services producer price index, which measures the price companies charge each other for services, followed a 1.5 per cent increase in December. It marked the 23th straight month of increase, BOJ data showed on Wednesday.

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