Japan Oct. Services Producer Prices Up 2.7 Pct

Tokyo, Nov. 26 (Jiji Press)–Japan’s services producer prices in October rose 2.7 pct from a year before, marking the 56th consecutive month of growth, the Bank of Japan said Wednesday. The services producer price index stood at 112.1 against the 2020 base of 100. The index tracks price movements of services traded between firms. The growth rate fell from 3.1 pct in September, although more companies continued to pass on increases in labor and distribution costs to their service prices. Of the 146 items surveyed, 109 saw price increases, while 20 recorded decreases. Prices of accommodation services jumped 18.1 pct, driven by a rush of demand ahead of the Oct. 13 closing of the 2025 World Exposition in the western Japan city of Osaka, as well as strong inbound travel demand. Hotel room and other space rental fees climbed 2.7 pct, supported by strong demand from inbound tourists. Prices for services with high labor cost ratios to production value rose 3.0 pct. Regarding a possible decline in the number of Chinese tourists to Japan due to worsening Japan-China relations, a BOJ official said the impact “could be seen in November or December.” Following Japanese Prime Minister Sanae Takaichi’s remarks on a potential Taiwan contingency in early November, the Chinese government has urged its citizens to refrain from visiting Japan. The BOJ official indicated that the central bank will closely watch developments, particularly in the accommodation and passenger transportation sectors. END [Copyright The Jiji Press, Ltd.]